Ongoing geopolitical and trade tensions, persistent inflation, elevated crude oil prices, and rising bond yields have increased equity market volatility in recent weeks. With limited progress toward resolving the United States-Iran conflict and reopening the Strait of Hormuz, market uncertainty could persist in the near term.
Against this backdrop, investors may want to consider quality dividend stocks that can provide a combination of income and stability. Companies with established businesses, resilient cash flows, and consistent dividend policies may be better positioned to navigate periods of heightened market volatility. With that in mind, let’s look at two dividend stocks that could be attractive opportunities for long-term investors.
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Canadian Natural Resources
Oil and natural gas prices remain elevated amid supply concerns stemming from the ongoing conflict in the Middle East and restrictions on tanker movements through the Strait of Hormuz. This favourable commodity-price environment could benefit producers such as Canadian Natural Resources (TSX: CNQ).
CNQ operates a diversified portfolio of large, high-quality, long-life reserves that require relatively low levels of capital reinvestment. Its efficient operations have also helped contain costs, supporting profitability and generating resilient cash flows across commodity-price cycles. These strong cash flows have enabled the company to increase its dividend for 26 consecutive years, at an annualized rate of more than 20%. With a quarterly payout of $0.625 per share, CNQ currently offers a healthy forward yield of approximately 3.72%.
Meanwhile, CNQ continues to strengthen its production capabilities, investing $4.4 billion in capital during the first two quarters and remaining on track to spend approximately $7.6 billion this year. Management expects total production to average between 1.637 million and 1.682 million barrels of oil equivalent per day this year, with the midpoint representing 5.7% year-over-year growth. Combined with elevated commodity prices, higher production could provide further support for the company’s revenue, earnings, and cash flows.
CNQ also has significant long-term growth potential, supported by approximately five billion barrels of oil equivalent in reserves and a proven reserve life of roughly 30 years. The company is simultaneously strengthening its balance sheet, repaying $1.6 billion of debt in the second quarter and reducing total debt to $14.5 billion at quarter-end. With a strong reserve base, growing production, improving financial position, and a long record of dividend growth, CNQ could be a compelling option in this uncertain market environment.
TC Energy
Another dividend stock that could offer an attractive opportunity is TC Energy (TSX: TRP), which transports natural gas across North America through an extensive pipeline network supported by long-term take-or-pay contracts. The company also operates approximately 4.7 gigawatts of power-generation facilities, with most of its output sold under long-term power purchase agreements. This regulated and contracted business model helps shield TC Energy’s financial performance from commodity-price fluctuations and broader economic conditions, supporting relatively stable and predictable cash flows.
These resilient cash flows have enabled TC Energy to increase its dividend for 26 consecutive years. With a quarterly payout of $0.8775 per share, the stock currently offers a forward yield of approximately 4.14%, providing an attractive source of recurring income for investors.
Meanwhile, rising natural gas production and consumption across North America are driving demand for pipeline infrastructure and related services. TC Energy is capitalizing on this trend by expanding its asset base. After placing approximately $2 billion of projects into service during the first two quarters, the company remains on track to bring another $3.5 billion of projects online this year. Its development pipeline of approximately $20 billion in projects also provides significant visibility into future growth.
These investments could support continued earnings growth, with TC Energy targeting adjusted earnings before interest, taxes, depreciation, and amortization of $12.6 billion to $13.1 billion by 2028, representing an annualized growth rate of approximately 5.4%. With a highly contracted asset base, resilient cash flows, and a visible growth pipeline, TC Energy appears well positioned to support continued dividend growth and could appeal to income-seeking investors.
