Investors tend to focus on the yield when evaluating a dividend stock. While that is important, another equally important factor is whether the stock keeps quietly increasing its dividend.
Several top Canadian dividend stocks have been raising their payouts over the years.
One dividend stock that has managed to keep raising its dividend without much of the market taking notice is Canadian Natural Resources (TSX: CNQ).
Here’s a look at what makes the company an appealing choice for income investors and why it may deserve a place in a long-term portfolio.
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All about Canadian Natural Resources
Canadian Natural Resources is one of the largest energy producers in Canada. The company has operations spanning natural gas, light and heavy crude oil, synthetic crude oil, and oil sands production.
This means that Canadian Natural Resources isn’t reliant on one type of energy production. More importantly, those assets are largely a collection of long-life, low-decline assets.
Traditional oil wells are subject to production declines over time. This requires companies to keep investing heavily to replace that lost output. The long-life, low-decline assets of Canadian Natural, on the other hand, can maintain steady production for decades.
This provides more stability in its output and reduces how much Canadian Natural needs to spend just to maintain production.
As a result, Canadian Natural Resources can generate cash flow to reinvest in the business through acquisitions and improvements while also paying its quarterly dividend.
That predictable cash flow also allows Canadian Natural Resources to pay down debt. During fiscal 2025, the company reduced its net debt by $2.7 billion.
In fiscal 2025, Canadian Natural also generated approximately $15.5 billion in adjusted funds flow, giving the company flexibility to reinvest, reduce debt, and return capital to shareholders.
Let’s talk about that dividend
For investors seeking a long-term dividend stock, Canadian Natural Resources checks off all the boxes. As of the time of writing, Canadian Natural offers a yield of 4.2%, which is attractive to income investors.
Canadian Natural recently raised its quarterly dividend from $0.5875 to $0.625 per share. That works out to an annualized payout of $2.50 per share, producing another increase in its long-running dividend-growth streak.
That being said, Canadian Natural Resources’ dividend-growth record is what makes the stock really appealing for income-seekers.
That’s because Canadian Natural Resources has raised its dividend for 26 consecutive years without fail. That spans a period that included recessions, oil-price crashes, and several major market downturns.
Despite all that, Canadian Natural Resources has continued to raise its payout.
In fact, over those 26 years, the company has produced a compound annual dividend-growth rate of nearly 20%.
That consistency makes this a dividend stock for investors seeking a mix of income and long-term growth.
A dividend stock built for long-term investors
Despite the attractive income potential, Canadian Natural Resources isn’t without risk. Oil and natural gas prices are unpredictable as we’ve seen this year. A sharp downturn in commodity prices could affect the company’s earnings.
Fortunately, Canadian Natural has some defensive appeal. The company is a large, diversified producer with long-life assets, substantial reserves, disciplined capital allocation, and a proven ability to generate cash across market cycles.
Throw in 26 consecutive years of dividend increases, and investors have a dividend stock that can continue quietly rewarding shareholders over the long term.
In my opinion, Canadian Natural Resources can make a strong core holding within a larger, well-diversified portfolio.
Buy it, hold it, and watch your income grow.
