Investors who missed the rally this year are wondering which Canadian stocks might still be good to add to a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and total returns.
Canadian National Railway
Canadian National Railway (TSX:CNR) trades near $130 at the time of writing. The stock is already down more than 15% over the past year and is way off the $180 it reached at one point in 2024.
CN had to abandon its initial 2025 guidance due to uncertainty surrounding trade negotiations between Canada and the United States. The Canadian rail giant originally anticipated 10% to 15% growth in adjusted diluted earnings per share (EPS) in 2025. The latest guidance puts the number in the mid- to high single digits.
Guidance reductions make investors nervous, so it isn’t a surprise that CN’s share price has been under pressure this year. A deal between Canada and the United States might not happen for some time, so there is a risk that the two economies could slide into a recession as tariffs start to have a larger impact.
That being said, contrarian investors should view weakness in CN’s share price as an opportunity to buy. The rail operator remains very profitable and is adjusting investments and operating expenses to address the current market conditions. At some point, the U.S. and Canada will get a new trade deal ironed out, which will provide clarity for businesses. That should boost demand for CN’s services.
CN raised the dividend in each of the past 29 years and is returning excess cash to shareholders through its buyback program.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) trades near $46 per share at the time of writing. That’s up from the April plunge below $36, but still off the 2024 high around $55.
A slide in oil prices is putting pressure on margins in the oil patch. Analysts broadly expect headwinds to continue through 2026 as record production in Canada and the United States and supply increases from OPEC occur at the same time that demand growth remains weak in China and could slow in the U.S. if the economy slides into a recession.
On the upside, CNRL continues to boost production through strategic acquisitions and successful drilling programs. The added revenue is helping offset the margin squeeze, and CNRL has actually delivered earnings growth through the first nine months of 2025 compared to last year.
Natural gas prices rebounded in recent weeks, and long-term demand for natural gas is expected to grow as gas-fired power facilities are built to supply electricity for AI data centres. CNRL is a major natural gas producer in Western Canada. New liquified natural gas (LNG) export capacity being built on the coast of British Columbia will enable CNRL to sell more natural gas in higher-priced international markets.
CNRL raised its dividend in each of the past 25 years. Investors who buy CNQ stock at the current price can get a dividend yield of 5%.
The bottom line
Canadian National Railway and CNRL trade at discounted prices and pay good dividends that should continue to grow. If you have some cash to put to work, these stocks deserve to be on your radar.
