Canadian investors are looking for good TSX dividend shares that act at reasonable prices to add to their self -driven tax -free savings account (TFSA) or registered pension savings plan (RRSP) portfolios aimed at dividend growth and total returns.
Canadian natural resources
Canadian natural resources (TSX: CNQ) acts at the time of writing near $ 43 per share compared to $ 55 at one point last year. The decrease is largely due to lower oil prices.
West Texas Intermediate (WTI) Oil sells for approximately US $ 63 per barrel at the time of writing compared to US $ 80 last year. Record production in Canada and the United States continues to feed the market, while OPEC is also planning to increase the offer to try to recapture a lost market share. On the demand side, traders are worried that a recession in the United States and further economic weakness in China can reduce oil consumption in the short term.
Analysts expect the oil prices to remain under pressure in 2026. However, investors must take the long representation compared to CNRL. The Canadian energy giant produces both oil and natural gas. Access to new markets is increasing with the construction and expansion of the export places of the liquid gas (LNG). Extra oil pipeline capacity, through upgrades to existing lines such as Trans Mountain or the construction of new to the Pacific or Atlantic coast, can also be en route because Canada strives to reduce dependence on the United States for energy sales.
CNRL is still very profitable at current oil prices and has the balance sheet strength to do strategic acquisitions when prices are low to stimulate reserves and production. The board has increased the dividend in each of the past 25 years. Investors who buy CNQ shares at the current price can get a dividend yield of 5.4%.
Fortis
Fortis (TSX: FTS) acts almost $ 68 per share at the time of writing compared to $ 71 last month. Investors can benefit from the dip to buy one of the best dividend growth shares in Canada.
Fortis manages utilities of natural gas distribution, facilities for power generation and electricity transmission networks in Canada, the United States and the Caribbean. The turnover from this assets is mainly regulated rate. This means that the cash flow is usually predictable, even due to challenging economic conditions.
Fortis is working on a $ 26 billion capital program that will increase the rate base from $ 39 billion in 2024 to $ 53 billion in 2029. Since the new assets are completed and taken into use, the boost to Cash Flow must support annual dividend increases from 4% to 6% in five years. Fortis increased the dividend in each of the last 51 years, so investors must be comfortable with the guidance.
Fortis has other projects that are being considered that can increase the backlog of the project. In addition, new growth opportunities can come forward for Fortis, since Canada wants to build a coast-to-coast-power grid as part of the new energy plan.
The share offers a decent dividend yield of 3.6% against the current stock price.
The Bottom Line
CNRL and Fortis pay attractive dividends that must continue to grow. If you have some money to put to work in a portfolio focused on dividends and total returns, these shares deserve to be on your radar.
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