Recent Purchase: Canadian Natural Resources (TSE: CNQ)

Canadian Natural Resources (CNQ)

On June 8th, I initiated a position in Canadian Natural Resources (TSE: CNQ). I bought 40 shares at $36.53, totaling an investment of $1461.20, plus a commision of $6.95 with CIBC Investor’s Edge.

When compared to other energy stocks on the Toronto Stock Exchange, I chose this company for a variety of reasons which you can read in my full analysis of CNQ I published last week; informing all of how CNQ appears to be a dividend growth investor’s dream.

On June 8th, CNQ closed at $36.56, trading at a P/E (TTM) of 13.5. The yield on cost also pays out a dividend of 2.52%, more than double the 5-year yield average of 1.05% (pay LESS get MORE), and still at a very nice, low payout ratio of 32.34%.

CNQ pays an annual dividend of $0.92 per share. Thus, my investment of 40 shares will increase my 12-month forward dividend income by $36.80. The ex-dividend date on CNQ is June 10th, so I bought just in time to receive the upcoming quarterly dividend of  $9.20.

CNQ is an incredible dividend grower, boasting a 10-year dividend growth rate of 24.57%. If CNQ kept up this growth rate, a 10-year yield on cost would amount to  21.86%! This means you’d receive a little more than 1 / 5 of your initial investment per year in dividends on your 10th year of holding shares. 

 

8 Replies to “Recent Purchase: Canadian Natural Resources (TSE: CNQ)”

    1. Thanks R2R, I did wait a bit longer than I wanted for it to get beat down but it looks like it paid off. I’m sure we’ll continue to see volatility here and in the market as a whole like lately. Only time will tell, as it always is.

      Thanks for stopping by
      DB

  1. I briefly looked at your analysis and 33% growth is a whopping one. With such growth the yield of 2.4% almost doesn’t matter. Also 13 years of consecutive increases is a great record. I think CQN was a good buy.

      1. Hey DB,

        I will start with royalty streams like PSK.to and FRU.to and then then add to CPG.o, and BTE.to. I’m also interested in ALA.to and GEI.to. Ideally I want to get them in fall.

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