Amidst market volatility, you may miss out on the most obvious profits and dividends by waiting for the right time to invest. Dividend investing doesn’t require timing the markets; you just need to invest. As per a CNBC report, U.S. president Donald Trump has been floating the idea of renaming certain territories he has a keen interest in as American property, even the Strait of Hormuz.
Talks between the United States and Iran are dictating global oil prices, as the Strait of Hormuz connects the biggest oil producers to the biggest oil consumers. This U.S.-Iran war has choked up the global energy supply chain and encouraged Canada to seek new markets for its oil and gas to reduce its dependence on the United States. This has presented dividend opportunities on the table in energy stocks.
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Stop leaving dividends on the table
Canada has a dividend stock benefiting significantly from the current oil crisis, Freehold Royalties (TSX: FRU). With a 6.42% dividend yield, this stock has just slipped 6.6% from September 15, 2026. Freehold is neither an oil company nor a midstream giant. It has no operational risk. The company owns oil reserves in America’s Permian Basin and Canada’s Saskatchewan area. It leases the oil wells to oil companies and earns royalty on the value of the oil produced.
In the first half of 2026, Freehold entered 70 new leases and generated $1.6 million of bonus consideration and lease rental revenue. Royalty revenue was over and above this amount. The royalty amount Freehold receives depends on the WTI benchmark, adjusted for foreign exchange, oil quality, and transportation costs.
WTI is hovering between US$60 and US$95, making Freehold’s quarterly free cash flow and dividend payout ratio volatile. Freehold is equipped to pay current dividends even at WTI of US$50, but the benchmark should not be below US$60 for long, or it may strain Freehold’s cash flows and affect dividends. Thus, its share price doesn’t increase beyond $19.
A $5,000 investment can buy you 297 shares of Freehold Royalties at $16.82 per share and give $26.73 in monthly dividends. Instead of keeping that $5,000 in a term deposit, consider taking this payout right now.
| Stock | Average stock price in May | Dividend per share | Total Investment | Number of shares bought from $10,000 | Total Dividend Amount | Monthly Dividend |
| FRU | $16.82 | $1.08 | $5,000 | 297 | $320.76 | $26.73 |
| CNQ | $67.17 | $2.50 | $5,000 | 74 | $185.00 | $15.42 |
This stock is paying right now
Freehold will pay its next dividend on October 15, and the payment amount will be decided based on the number of shares you held on September 29. Do not delay the purchase, or you will have to wait till November 15 for the payout. Every month’s delay has an opportunity cost of $26.73.
How to position this stock in dividend investing
Freehold stock is cyclical, which means good dividends will flow through when oil prices are strong. However, it can slash dividends if oil production slows. Hence, consider diversifying your dividend portfolio across large-cap stocks and different sectors.
Canadian Natural Resources (TSX: CNQ) is a good long-term stock to buy because of its low production cost. It has one of the largest oil sands reserves in the world. Its low-maintenance and slow-depleting reserves create an advantage. It has diversified its product mix to include Synthetic crude, liquefied natural gas, and WTI. Synthetic crude commands a premium price, helping it hedge against oil price volatility.
Canadian Natural Resources’s 25-year track record of growing dividends, even in the 2016 oil crisis or the 2020 pandemic, makes it a stock to own for the long term.
In the table above, you will see that a $5,000 investment will only bring $185 in annual dividends, which is 57% of what Freehold is paying. However, Canadian Natural Resources’s 10-year average annual dividend growth of 18% will help you grow dividends in the long term, balancing Freehold’s cyclicality with its stability.
