Constary investors aimed at dividends are constantly looking for opportunities to buy top dividend growth shares at a reduced price for their self -driven tax -free savings account (TFSA).
Buying shares when they are out of grace requires courage and requires the patience to drive out volatility, but the strategy can yield attractive dividend yields and at the same time position your portfolio for capital profits on a rebound.
Canadian Natural Resources Limited
Canadian natural resources (TSX: CNQ) acts almost $ 42 per share at the time of writing compared to $ 55 at the peak in 2024.
The pullback is mainly due to weaker oil prices. West Texas Intermediate (WTI) acts almost $ 67 per barrel at the time of writing compared to more than US $ 80 last year. Apart from a few short peaks because of geopolitical events, oil prices have been lowered in the last 12 months.
In 2024 the story was mainly about a weak demand in China and the increasing supply of non-Opec producers, including Canada and the United States. This year, traders are trying to find out how rates imposed by the United States on its trading partners will influence the American and global economies. A recession in the United States and a weaker economy in China would reduce the demand of the oil. At the same time, OPEC intends to increase the offer to try to recapture a lost market share. This will be an extra headwind for oil prices.
Energy Bulls expect that the world economy will strengthen as the United States concludes trade agreements with its most important partners. Disruptions in the range as a result of geopolitical conflicts in important producing areas can quickly push prices higher, as we have seen in the past year. A long -term offer from a large producer could more than compensate for production growth growth.
Investors must anticipate continuous turbulence in the short term.
CNRL -Income
CNRL is good at navigating through the turbulence in energy markets. The company does a good job to allocate capital to the parts of its portfolio that generate the best return in the midst of shifting energy prices. CNRL has oil manden, conventional heavy oil, conventional light oil, offshore oil, natural gas fluids and natural gas production. The natural gas operations can offer a cover when the oil prices fall, as is the case in the current market. The natural gas prices have fallen compared to the peak of 2025, but still even higher at the moment than for most of 2023 and 2024.
CNRL is growing due to strategic acquisitions and capital investments that bring reserves online. Last year CNRL bought Chevron’s Canadian assets for US $ 6.5 billion. The deal helps to stimulate sales and profit growth in 2025, while the reserves for future production extension contribute. In the first quarter, the drilling program added 57 net new oil sources and 19 net new natural gas sources with a drilling speed of almost 100%.
CNRL generated adapted net income from $ 2.4 billion activities in Q1 2025 compared to $ 1.5 billion in the same period last year. That translates in $ 1.16 per share compared to $ 0.68 in Q1 2024. CNRL says that the WTI Breakeven price is around US $ 40 to US $ 45 per barrel, so it remains very profitable at current oil prices.
The board has already increased the dividend by 4% in 2025, after two increases last year. This is the 25th consecutive annual increase in dividends that represents a compound annual dividend growth of 21% about that time frame.
New oil and natural gas piping capacity that runs to the Pacific, Atlantic Ocean and Arctic coasts can be on the road in the coming years, because Canada wants to reduce dependence on the export of energy. CNRL would benefit from access to new international buyers if these assets were built.
The Bottom Line
Volatility in the short term is expected in the energy market, but CNRL already looks cheap. Investors who buy the shares at the current level can collect a dividend yield of 5.5%. If you have some money to put to work, these shares deserve to be on your radar.
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