Canadian Natural Resources Stock And 2 TSX Dividend Plays Yielding More Than 5%

Energy price volatility linked to ongoing Middle East risks keeps inflation concerns front and center. That pushes many investors to look for income streams that feel steadier than short term market sentiment. High yield dividend powerhouses with covered, growing payouts can help anchor a portfolio when headlines swing. This article highlights three stocks from the Dividend Powerhouses screener that offer 5%+ yields and a focus on payout stability.

The three dividend stocks highlighted below are just a starting sample, and the full screen surfaces 7 more companies with equally income focused stories that are not covered here. If you want to go straight to the source and identify, compare, and analyze your own high conviction dividend payers, head into the Dividend Powerhouses (3%+ Yield) screener.

Peyto Exploration & Development (TSX:PEY)

Peyto Exploration & Development is a Calgary based producer focused on natural gas, oil and natural gas liquids in Alberta’s Deep Basin. The company generates essentially all of its roughly CA$1.2b in revenue from exploration and production activities, with operations concentrated in Canada. Its current market value is about CA$5.0b, which puts it firmly in mid cap territory on the TSX.

Income focused investors may find Peyto Exploration & Development interesting because it combines a high monthly dividend with a gas weighted asset base supported by long term supply contracts, including future LNG linked exposure through agreements like the 10 year Centrica deal starting in 2029. Recent results show strong funds from operations, active debt reduction and higher liquids output, which all matter for dividend support. However, the stock also comes with real risks. Heavy reliance on Alberta gas pricing, an unstable dividend history, forecast earnings pressure and recent insider selling all warrant closer scrutiny before deciding whether the current valuation and yield justify a place in a portfolio.

Gas weighted cash flows and a high monthly payout make Peyto Exploration & Development look like pure income, yet the real story sits in the detailed 4 key rewards and 3 important warning signs (1 is major!)

Build your own high-yield dividend shortlist

Peyto Exploration & Development and the other two stocks in this article all came from a single screen, but the real value is in creating filters that fit your own income goals. Use our flexible Screener to combine yield, payout ratios, valuation and balance sheet strength, or lean on our curated Investing Ideas for ready made starting points.

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources is one of Canada’s largest oil and gas producers, with operations spanning oil sands mining, conventional crude, natural gas and midstream assets. The bulk of its roughly CA$43.4b in revenue comes from Exploration and Production in North America at about CA$21.3b and Oil Sands Mining and Upgrading at about CA$20.8b, with smaller contributions from midstream and international assets. The company’s current market value is around CA$136.9b, which firmly places it in large cap territory on the TSX.

Income investors often look at Canadian Natural Resources because it combines a long dividend track record, including 26 consecutive years of increases, with strong recent operating performance and ongoing share buybacks. The company is reporting record production, rising net profit margins and significant cash returns. At the same time, analysts still expect earnings and revenue to decline over the next few years and point to oil sands exposure, regulatory pressures and pipeline constraints as key risks. That mix of high cash generation today, supportive governance and a mixed outlook is one reason this stock stands out in a dividend focused screen. It also highlights why a closer look at its valuation, payout sustainability and long term demand risks can be important before making any decisions.

Canadian Natural Resources is returning a lot of cash to investors through dividends and buybacks, yet the full story sits in how that capital return stacks up against future cash flow needs in the 4 key rewards and 2 important warning signs (1 is major!).

Manulife Financial (TSX:MFC)

Manulife Financial is a global insurer and asset manager that offers life and health insurance, annuities, retirement plans and wealth management products across Canada, the U.S., Asia and other markets. The business leans heavily on Global Wealth and Asset Management at about CA$7.2b in revenue, alongside Asia at CA$4.8b and Canada at CA$3.2b, with smaller contributions from the U.S. and Corporate and Other lines. The stock has a market value of roughly CA$102.4b, which places it among the larger financial companies on the TSX.

Income investors may want Manulife Financial on their radar because it blends a roughly 3.1% dividend yield with fee heavy Global WAM growth, rising core earnings and fresh capital actions such as long term care reinsurance deals that aim to reduce risk and free up capital. At the same time, the story is not without tension. Funding relies entirely on external sources rather than customer deposits, there has been meaningful insider selling, and board and management turnover raise questions about execution. For investors willing to weigh growth in Asia, AI driven efficiency efforts and ongoing buybacks against these governance and credit risks, Manulife offers a dividend-focused income opportunity that may warrant a closer look beyond the headline yield.

Manulife’s mix of fee driven Global WAM growth, Asia exposure and fresh capital moves has many investors only half seeing the picture. Scan the 4 key rewards and 1 important warning sign to spot the quiet factor that could tilt the story.

Seeking Alternatives Before The Crowd Moves

Fresh ideas do not stay under the radar for long. By the time momentum headlines hit, the best entry points can be gone. Scan these curated lists while it matters and consider your options.

• Review potential resilient cash generators before they are re-rated by the market by exploring the curated list of solid balance sheet and fundamentals (12 results).
• Explore potential AI infrastructure stories while they may still be quietly building momentum by assessing companies inside the 56 AI infrastructure stocks.
• Assess companies that could benefit from a possible grid upgrade cycle by reviewing power equipment and transmission stocks inside the 40 power grid technology and infrastructure stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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