1 Canadian Energy Stock You’ll Want to Hold Forever

This energy stock just had another banner quarter, but looks as though it might have even more growth to come.

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Key Points

  • CNQ, a top global energy producer, reported $2.5 billion in net earnings and robust cash flows for dividends and growth.
  • CNQ increased Oil Sands Mining production by 13% year-over-year, enhancing future cash flow with strategic asset acquisitions.
  • CNQ returned $1.6 billion in dividends and buybacks last quarter, boasting 25 years of dividend growth for reliable income.

As investors, many of us likely want to find the stocks that are going to send our shares to the moon — ideally, overnight. And these stocks would lead us to living a life of luxury because we’ve turned $100 into $1,000,000 in a couple of hours.

And, of course, this is so wildly ridiculous that it could never possibly happen. I mean, $100 to $1,000,000 won’t happen overnight. But it could certainly happen given enough time and enough drip-feeding. Yet if there’s one area where this scenario looks most likely, it’s energy, especially with an energy stock like Canadian Natural Resources (TSX:CNQ).

About CNQ

CNQ isn’t your typical energy company. This dividend stock is one of the largest independent crude and natural gas producers — not just in Canada but in the world. The company mainly operates in North America, the North Sea, and offshore Africa. In these locations, the dividend stock holds a diverse and balanced portfolio of different types of crude oil, as well as natural gas.

This can be seen over and over again during earnings. The dividend stock recently reported the second quarter for 2025, and it was another banner performance. Net earnings totalled $2.5 billion, with adjusted net earnings reaching $1.5 billion. The dividend stock also generated cash flow from operating activities at $3.1 billion, with adjusted funds flow hitting $3.3 billion. In short? That’s a lot of cash for dividends and growth.

The dividend stock also maintained a strong balance sheet during this period, with $4.8 billion in liquidity, reducing net debt by about $2 billion by the end of 2025. It also repaid US$600 million of its U.S. debt, showing it can produce cash while paying down debts.

More to come

While the past has been successful, the future looks just as bright. The dividend stock achieved a significant increase in production during the second quarter, growing Oil Sands Mining and Upgrading by 13% year over year. With more drilling, improved efficiency, lower costs and increased production, the company is headed towards even more cash flow for investors.

In fact, CNQ expanded its asset portfolio during the quarter, acquiring valuable assets like Palliser Block and Montney Assets out in Alberta. These enhance its production, while also providing synergies and future growth.

It’s no wonder then that the dividend stock has become synonymous with income. In the second quarter alone, CNQ returned $1.6 billion in dividends and share repurchases to investors. Its dividend growth now spans 25 years, showing that investors can look forward to even more income going forward. In fact, an investment of even just $7,000 would bring in annual income of $392 each and every year!

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
CNQ$41.96167$2.35$392.45Quarterly$7,009.32

Bottom line

So, if you’re looking for a stock to buy and hold forever, it’s clear that CNQ belongs on your watchlist. The dividend stock is booming bigger and better than ever before. And there’s even more growth on the way. Add in substantial dividend income, and it’s a compelling opportunity for investors who want stable growth from the energy sector.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

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