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Canadian Natural Resources Stock Draws Income Investors With 26 Years Of Dividend Growth

Simply Wall St · 2d ago

With inflation, interest rates and energy markets all pulling at your portfolio, reliable income from well covered, growing dividends can help smooth the ride. The Dividend Powerhouses (3%+ Yield) screener focuses on companies paying more than a 5% yield, with payouts that appear stable rather than stretched. That combination can appeal if you want cash flow that is less tied to short term market swings or changing rate expectations. In this article, you will see 3 stocks from the screener that highlight how this approach can work in practice and what to watch before considering any dividend stock.

Peyto Exploration & Development (TSX:PEY)

Overview: Peyto Exploration & Development is a Calgary based energy company focused on exploring, developing and producing natural gas, oil and natural gas liquids in Alberta’s Deep Basin, where it has built a large, long life asset base.

Operations: Peyto generates essentially all of its CA$1.18b in revenue from oil and gas exploration and production in Canada.

Market Cap: CA$5.0b

Peyto Exploration & Development appears in the Dividend Powerhouses screener because it couples a high monthly dividend with recent earnings momentum and a focus on efficient gas production in Alberta’s Deep Basin. Revenue of CA$426.4 million and net income of CA$171.09 million in Q1 2026, alongside high quality earnings and a P/E below the Canadian Oil & Gas industry average, indicate a company that the market may not fully price in. The long term gas supply agreement with Centrica brings future TTF linked exposure. However, heavy reliance on Alberta gas, regulatory cost pressure and an unstable dividend history keep risk firmly on the table. Together, these factors create a more nuanced income story than the headline yield suggests.

Peyto Exploration & Development’s high yield, recent earnings momentum and P/E below the Canadian Oil & Gas industry average hint at an income story the market may be underpricing, so review the 4 key rewards and 3 important warning signs (1 is major!)

TSX:PEY P/E Ratio as at Jul 2026
TSX:PEY P/E Ratio as at Jul 2026

Canadian Natural Resources (TSX:CNQ)

Overview: Canadian Natural Resources is a Calgary based oil and gas producer that acquires, develops and operates a wide range of assets, from oil sands mining and synthetic crude to conventional crude oil, natural gas and NGLs across Western Canada, the North Sea and Offshore Africa.

Operations: Canadian Natural Resources generates most of its revenue from Exploration and Production in North America (about CA$19.1b) and Oil Sands Mining and Upgrading (about CA$17.4b), with smaller contributions from Midstream and Refining (about CA$818m) and the North Sea (about CA$217m).

Market Cap: CA$127.8b

Canadian Natural Resources stands out in the Dividend Powerhouses screener as a large scale producer combining a roughly 4% dividend yield and 26 year dividend growth streak with disciplined expansion of its oil sands and North American gas portfolio. Investors get exposure to substantial production, recent earnings strength and active buybacks. A relatively low P/E and discount to intrinsic value estimates suggest the market may be cautious about forecasts for slower revenue and earnings in coming years. At the same time, reliance on oil sands, potential regulatory cost pressure and pipeline or export constraints mean the story is not risk free. For income focused investors, the real question is how these strengths and pressures balance out over the next phase of the cycle.

Canadian Natural Resources has a 26 year dividend growth streak, active buybacks and a relatively low P/E that could be masking a bigger story, so tap into the 4 key rewards and 2 important warning signs (1 is major!)

TSX:CNQ P/E Ratio as at Jul 2026
TSX:CNQ P/E Ratio as at Jul 2026

Manulife Financial (TSX:MFC)

Overview: Manulife Financial is a Toronto based insurer and asset manager that provides life and health insurance, annuities, retirement products and investment solutions to individuals and institutions across Canada, the U.S., Asia and other markets.

Operations: Manulife generates most of its CA$7.05b in revenue from Global Wealth and Asset Management, with sizeable contributions from Asia (CA$4.45b), Canada (CA$3.30b) and Corporate and Other (CA$755m), and smaller revenue from the U.S. insurance and annuity segment (CA$355m).

Market Cap: CA$101.37b

Manulife Financial combines a 3.19% dividend yield with a large, diversified insurance and asset management footprint, supported by growth in Asia and the U.S., rising fee based income and a series of AI and digital initiatives aimed at making operations more efficient. Earnings of CA$1,193 million in Q1 2026, a 18.5% net margin and a share price that screens at a deep discount to some intrinsic value estimates give income investors a reason to pay attention, especially alongside ongoing buybacks and recent balance sheet moves. However, heavier reliance on external funding, insider selling, management turnover and exposure to Asian regulation and credit risk mean this is not a set and forget dividend story, and those trade offs deserve closer scrutiny before making any decision.

Manulife Financial’s earnings strength, dividend and buybacks could be masking a bigger story around where growth and risk really sit in this global insurer. Walk through the 4 key rewards and 1 important warning sign

MFC Discounted Cash Flow as at Jul 2026
MFC Discounted Cash Flow as at Jul 2026

The three Dividend Powerhouses in this article are just a starting point. The full screen of the Dividend Powerhouses (3%+ Yield) screener surfaces 9 more companies with equally compelling dividend and business narratives that you have not seen yet. Use Simply Wall St to identify and analyze the specific catalysts, dividend coverage and narrative factors that matter most to you so you can focus on the highest conviction ideas from this group.

Take Control of Your Investment Journey

If Peyto Exploration & Development or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.