Is Canadian Natural Resources’ 5.6% Yield Safe?
Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ) offers investors a high-yielding dividend of 5.6%. Although the stock is down this year, it’s still up by an incredible 235% in just the past five years. But the big question moving forward is whether its dividend is still safe. And a good way to evaluate that is by looking at the company’s earnings.
Recently, Canadian Natural Resources posted its second quarter numbers for 2025. And even as commodity prices softened, the business still demonstrated some impressive results. Its adjusted funds flow for Q2 was $3.3 billion, and with its dividend payments totaling just $1.2 billion for the quarter, the payout remains well-covered by its operational cash flow. Canadian Natural’s ability to fund dividends without compromising its balance sheet strength is an encouraging sign for investors who might be worried about the payout’s safety, especially with the yield being as high as it is.
Furthermore, the company’s breakeven for WTI price is in the range of low-to-mid US$40/barrel. With WTI right now being above US$60/barrel, Canadian Natural Resources remains in fine shape. The oil and natural gas producer has a solid streak of growing its dividend for 25 consecutive years. Today, its current quarterly dividend is $0.5875, and it has nearly tripled it from 2020, when the stock was paying just $0.2125 every quarter.
Canadian Natural Resources’ efficient operations and safe dividend make it a great stock for long-term investors to own. Even though its dividend yield may seem high, there’s no imminent danger of a cut or suspension. And with business still looking solid, more dividend increases could be forthcoming for investors down the road.
