Investors focused on dividends and long-term total returns are wondering which TSX stocks are still attractive right now to add to a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio.
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Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) trades below $64 per share at the time of writing compared to nearly $71 at the 2026 high.
The pullback is due to a drop in oil prices as traders book profits after the big run in recent months due to the closure of the Strait of Hormuz, through which roughly 20% of global oil supply has traditionally passed.
Big moves in energy prices should be expected over the near term as negotiations between the United States and Iran continue. CNQ investors, however, should focus on the long-term prospects for the company.
Opportunity
CNRL is a giant in the Canadian energy patch with a current market capitalization of $132 billion. The firm is best known for its diversified oil production and reserve assets that include oil sands, conventional heavy and light oil, and offshore oil holdings. CNRL is also a major natural gas producer.
On the oil side, new export capacity is likely on the way as Canada moves to boost its sales to international buyers as part of its efforts to reduce reliance on the United States for energy purchases. Trans Mountain, which went into service in 2024, is now operating at capacity and expansion plans are being discussed that would boost throughput by an additional 360,000 barrels per day.
Capacity expansion to the United States is also in the works. The U.S. remains an important export market, despite all the trade challenges.
At the same time, Alberta is pushing to get a new pipeline built to carry more oil to the coast of British Columbia.
Natural gas exports are also rising. LNG Canada, the new liquefied natural gas export facility in British Columbia, is already planning a second phase to boost export capacity with the planned expansion of the Coastal GasLink pipeline that brings natural gas from producers to the LNG Canada site. Additional LNG export projects are under construction on the BC coast to enable shipments to buyers in Asia.
Europe is keen to shore up reliable LNG supplies from Canada, as well. This could lead to the construction of a new natural gas pipeline and an export facility in Manitoba to ship the fuel through the Arctic from Churchill. A new LNG facility on the St. Lawrence River is also a possibility if Quebec agrees to the construction of new infrastructure.
It is unclear how many of the new projects will actually be approved and completed, but any new oil and natural gas export capacity will benefit CNRL.
Dividend
CNRL raised its dividend in each of the past 26 years. That’s a great track record for a business that relies on commodity prices to determine its profit margins. CNRL’s secret lies in its diversified asset portfolio and its strong balance sheet. Investors who buy CNQ stock at the current level can get a dividend yield of close to 4%.
The bottom line
Additional downside in the share price is certainly possible in the coming months, but you get paid well to ride out the turbulence. CNRL should be a solid dividend pick for a buy-and-hold portfolio. Weakness in the stock would be an opportunity to add to the position.
