We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Canadian Natural's Dividend Story Keeps Getting Stronger
Read MoreHide Full Article
Key Takeaways
CNQ has raised its dividend for 25 consecutive years, showing strong shareholder commitment.
The firm returned about C$4.6B to investors in early 2025 via dividends and buybacks.
CNQ plans to return all free cash flow once net debt hits C$12B, reinforcing fiscal discipline.
Canadian Natural Resources Limited ((CNQ - Free Report) ) continues to demonstrate how disciplined capital allocation can translate into consistent shareholder value. The company boasts an exceptional track record of 25 consecutive years of dividend increases, one of the longest streaks among global oil producers. Since 2001, CNQ’s dividend has seen a compound annual rate of roughly 21%, underscoring management’s commitment to returning capital even through volatile commodity cycles.
In the first half of 2025, Canadian Natural returned approximately C$4.6 billion to its shareholders through a combination of dividends and share repurchases. The company’s dividend growth remains notable — from C$1.775 per share in 2023 to C$2.075 in 2024, and an annualized C$2.35 per share in 2025 — highlighting its ability to sustain and raise payouts even during periods of low commodity prices.
CNQ’s focus on cost efficiency and balanced capital spending has enabled it to maintain these payments while preserving a strong balance sheet. Once net debt reaches its C$12 billion target, Canadian Natural plans to return 100% of free cash flow to its shareholders — an approach that further reinforces its disciplined financial framework.
This unwavering dividend philosophy has become central to CNQ’s identity. Rather than pursuing aggressive expansion, the company continues to prioritize predictable, shareholder-friendly returns. Its consistent dividend growth — backed by resilient free cash flow and robust operational execution — illustrates how Canadian Natural has evolved into a model of stability in the energy sector, turning capital discipline into one of its most defining competitive strengths.
Canadian Energy Operators With Dividend Strength in Focus
Baytex Energy ((BTE - Free Report) ) maintains a disciplined dividend strategy focused on balance sheet strength and sustainable shareholder returns. Baytex Energy allocates 100% of free cash flow to debt reduction after funding its quarterly dividend. Over the long term, Baytex Energy aims for reliable dividend growth, complemented by opportunistic share buybacks.
Cenovus Energy ((CVE - Free Report) ) has built a strong record of rewarding shareholders through steady and growing dividends. Cenovus Energy targets roughly 100% return of excess free funds flow while sustaining payouts even at $45 WTI. With five straight years of double-digit base dividend growth, Cenovus Energy continues delivering consistent, shareholder-focused returns.
The Zacks Rundown on Canadian Natural Resources
Shares of CNQ have gained 14.7% in the past six months compared with the Oil/Energy sector’s increase of nearly 13%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of forward price-to-earnings ratio — Canadian Natural Resources is trading at a premium compared with the industry average.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for CNQ’s earnings has been revised over the past 60 days.
Image: Bigstock
Why Canadian Natural's Dividend Story Keeps Getting Stronger
Key Takeaways
Canadian Natural Resources Limited ((CNQ - Free Report) ) continues to demonstrate how disciplined capital allocation can translate into consistent shareholder value. The company boasts an exceptional track record of 25 consecutive years of dividend increases, one of the longest streaks among global oil producers. Since 2001, CNQ’s dividend has seen a compound annual rate of roughly 21%, underscoring management’s commitment to returning capital even through volatile commodity cycles.
In the first half of 2025, Canadian Natural returned approximately C$4.6 billion to its shareholders through a combination of dividends and share repurchases. The company’s dividend growth remains notable — from C$1.775 per share in 2023 to C$2.075 in 2024, and an annualized C$2.35 per share in 2025 — highlighting its ability to sustain and raise payouts even during periods of low commodity prices.
CNQ’s focus on cost efficiency and balanced capital spending has enabled it to maintain these payments while preserving a strong balance sheet. Once net debt reaches its C$12 billion target, Canadian Natural plans to return 100% of free cash flow to its shareholders — an approach that further reinforces its disciplined financial framework.
This unwavering dividend philosophy has become central to CNQ’s identity. Rather than pursuing aggressive expansion, the company continues to prioritize predictable, shareholder-friendly returns. Its consistent dividend growth — backed by resilient free cash flow and robust operational execution — illustrates how Canadian Natural has evolved into a model of stability in the energy sector, turning capital discipline into one of its most defining competitive strengths.
Canadian Energy Operators With Dividend Strength in Focus
Baytex Energy ((BTE - Free Report) ) maintains a disciplined dividend strategy focused on balance sheet strength and sustainable shareholder returns. Baytex Energy allocates 100% of free cash flow to debt reduction after funding its quarterly dividend. Over the long term, Baytex Energy aims for reliable dividend growth, complemented by opportunistic share buybacks.
Cenovus Energy ((CVE - Free Report) ) has built a strong record of rewarding shareholders through steady and growing dividends. Cenovus Energy targets roughly 100% return of excess free funds flow while sustaining payouts even at $45 WTI. With five straight years of double-digit base dividend growth, Cenovus Energy continues delivering consistent, shareholder-focused returns.
The Zacks Rundown on Canadian Natural Resources
Shares of CNQ have gained 14.7% in the past six months compared with the Oil/Energy sector’s increase of nearly 13%.
From a valuation perspective — in terms of forward price-to-earnings ratio — Canadian Natural Resources is trading at a premium compared with the industry average.
See how the Zacks Consensus Estimate for CNQ’s earnings has been revised over the past 60 days.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.