The Canadian Energy Stock I’m Buying Now: It’s a Steal

Energy stocks can turn fast. In fact, that’s exactly why Canadian Natural Resources (TSX:CNQ) looks interesting right now. The stock gives investors exposure to one of Canada’s largest energy producers, a growing dividend, and a business built around long-life assets. Yet the market still treats it like a simple oil-price bet. That creates the opportunity.

CNQ

CNQ stock produces crude oil, natural gas, bitumen, and synthetic crude. Its operations span Western Canada, the U.K. North Sea, and offshore Africa, but the core story sits in Canada. The company owns massive oil sands assets, which tend to require large upfront spending but can then produce for decades. That makes CNQ stock different from smaller producers that must keep drilling aggressively just to hold production steady.

The economy looks uneven, interest rates still squeeze households, and oil prices can swing on every supply headline. In that kind of market, I want an energy company with scale, low-decline assets, and a management team that keeps sending cash back to shareholders.

Into earnings

CNQ stock’s latest quarter backed that up. In the first quarter of 2026, the company generated adjusted funds flow of about $4.4 billion and adjusted net earnings of $2.4 billion. Production reached roughly 1.64 million barrels of oil equivalent per day (boe/d). Those are huge numbers, and show why CNQ stock can keep rewarding investors even when the energy market feels choppy.

The dividend is another major reason I’d buy. CNQ stock declared a quarterly dividend of $0.625 per share for July 2026. That marks 26 straight years of dividend growth, yielding at 3.9% at writing. Very few commodity-linked companies can say that. Even as oil and gas prices rise and fall, CNQ stock has still found a way to grow its payout through multiple cycles.

The company also buys back stock. In Q1, it returned about $1.5 billion to shareholders, including $1.2 billion in dividends and $300 million through share repurchases. And it’s still a great deal for investors, trading at 12 times earnings. For a company with this scale, dividend record, and cash-flow power, that looks reasonable.

Looking ahead

CNQ stock needs steady production, disciplined spending, and oil prices that remain decent to stay strong. If crude stays supportive, CNQ stock can continue to fund dividends, buybacks, and debt management. If oil rises, the upside could arrive quickly.

Yet investors should also remember that energy stocks can feel hated right before they work. When sentiment cools, high-quality producers often get priced too cheaply. Then one stronger oil market, one better quarter, or one larger shareholder-return update can remind investors why the stock deserves a premium.

CNQ stock fits that setup. It’s large, profitable, shareholder-friendly, and still priced as if the market does not fully trust the cash flow. I’d rather buy that kind of energy stock than chase a smaller name with more debt and more guesswork.

Bottom line

For investors who can handle commodity risk, CNQ stock looks like one of the best energy stocks on the TSX right now. What’s more, it offers ample income even with $7,000 to invest.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCNQ$65.30107$2.50$267.50Quarterly$6,987.10

Altogether, CNQ stock pays, grows, and gives patient buyers a real shot at income and upside today as well.

The post The Canadian Energy Stock I’m Buying Now: It’s a Steal appeared first on The Motley Fool Canada.

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More reading

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.