Canadian investors are searching for good dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) portfolios focused on income and long-term total returns.
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Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is up more than 50% in 2026, supported by the rebound in oil prices caused by supply disruptions in the Middle East.
The stock trades near $71 per share at the time of writing, just shy of the $72 peak for the year. The easy money has likely already been made on the surge, but buy-and-hold investors should still consider owning the stock at this level.
CNRL reported record production of 1.7 million barrels of oil equivalent per day (BOE/d) in Q2 2026, representing an 18% increase over the same quarter last year. The gains reflect contributions from acquisitions, as well as production growth driven by capital investments. In addition, CNRL raised its production guidance for the second time this year, citing strong drilling results and contributions from another acquisition, completed in recent months. CNRL’s 2026 capital program remains set at $6 billion.
CNRL owns assets across the energy spectrum. These include oil sands, conventional heavy oil, conventional light oil, offshore oil, and natural gas. Management is adept at quickly moving capital around the portfolio to get the best returns depending on movements in commodity prices.
Adjusted net earnings in Q2 2026 came in at a record $4.6 billion. The company continues to reward investors through higher dividends and share buybacks, while also reducing net debt. CNRL has increased the dividend in each of the past 26 years. High oil prices are set to push profits even higher in the second half of the year. This should enable CNRL to reduce net debt at a faster pace to get to the $13 billion target where it intends to start returning 100% of free cash flow to shareholders. CNRL finished Q2 2026 with net debt of about $14.5 billion.
Opportunity
West Texas Intermediate (WTI) oil trades near US$102 per barrel at the time of writing. Brent crude oil trades near US$107. CNRL has previously said its average WTI breakeven is in the US$40 to $45 range, so the company is generating strong margins in the current market conditions. Oil prices will decline when the U.S. and Iran finally end their dispute. That could be some time down the road, however, as the situation appears to be getting worse, rather than moving toward a resolution.
The long-term impact of the disruption should also be positive for CNRL and its Canadian peers. Countries around the globe want to secure stable oil supplies from Canada. The addition of new pipeline capacity in the past two years has already enabled Canadian producers to ship more oil to higher-priced global markets. Canada’s urgency to reduce reliance on the United States for energy sales could lead to more oil and natural gas pipelines being built to move the energy products to new export facilities.
CNRL is a major producer of both oil and natural gas. Demand for natural gas is also expected to surge as new gas-fired power generation facilities are built to supply electricity for AI data centres.
The bottom line
Volatility should be expected in the near term, with any significant drop in the price of oil likely leading to a pullback in the share price. That being said, CNRL pays a good dividend that should continue to grow. The long-term prospects look good right now for the company. Dips would be an opportunity to add to the position.
If you have some cash to put to work, this stock deserves to be on your radar.
