Buying dividend stocks and adding them to tax-sheltered accounts like the Registered Retirement Savings Plan (RRSP) or the Tax-Free Savings Account (TFSA) can be a savvy approach for Canadian investors. If you have a long-term view of investing in the stock market, utilizing these accounts’ tax-sheltered status can become a gift that keeps on giving.
The S&P/TSX Composite Index is showing signs of volatility these days. Despite several stocks trading at all-time highs, there are several deals to be found on the market for those who know where to look. The energy sector has pockets that have underperformed compared to the broader market, and that presents an opportunity for investors.
Today, I will discuss a top Canadian energy stock trading at a discount that you might want to have on your radar.
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Canadian Natural Resources
Canadian Natural Resources Ltd. (TSX:CNQ) is a $91.6 billion market-cap senior energy company headquartered in Calgary. The oil and natural gas production company engages in the exploration, development, marketing, and production of natural gas and crude oil.
The industry giant saw its share prices dip this year. As of this writing, CNQ stock trades for $43.95 per share, down by 10.7% from its 52-week high. However, prices went as low as $35 back in April 2025, owing to the panic in the market due to tariffs. Seasoned investors have since been buying up shares of CNQ stock to lock in higher-than-usual yielding dividends and capture significant long-term upside on the rebound.
Is the opportunity still there?
At current levels, CNQ stock is still around 20% down from its April 2024 all-time high. This means there is still some upside to capture with a continued recovery. Considering that it is one of the biggest oil and natural gas producers in the region and the rising demand for hydrocarbons produced in Canada, a recovery to previous all-time highs is not impossible.
Canadian Natural Resources has a wealth of long-life and low-decline oil and natural gas assets. With the completion of the Coastal GasLink pipeline, it has established a connection to the new LNG Canada export facility. Besides that, additional export sites are already under construction. Through these export sites, CNQ will be able to sell its traditional energy commodities in international markets at a faster pace.
Foolish takeaway
There is a possibility that we will see lower prices for crude oil in the coming months. This could lead to weakness in energy stocks. However, Canadian Natural Resources is one of the blue-chip stocks that can recover.
In case the downturn doesn’t happen, it might be a good idea to purchase at least some shares of the stock for now. Depending on whether an industry-wide weakness hits the energy sector, you might have a better bargain awaiting in the next few months.
