Dividend investing primarily requires endurance, and typically, that endurance will get examined. That’s precisely what’s occurring with Canadian Pure Assets (TSX:CNQ) proper now. Regardless of its constant dividend development and steady enterprise mannequin, the inventory has slipped over 17% from its 52-week excessive. It’s not a straightforward tablet to swallow, however we should not neglect that its long-term fundamentals nonetheless look strong.
Actually, the corporate is producing document volumes, sustaining top-tier operational effectivity, and returning billions to shareholders. Whereas the market may briefly be reacting to short-term pressures, I see this correction as a long-term reward.
On this article, I’ll share why Canadian Pure Assets has turn out to be my prime worth choose proper now and what makes it too enticing to disregard.
My prime worth choose for earnings traders
Being considered one of Canada’s largest vitality corporations, Canadian Pure Assets operates in oil sands, pure fuel, and offshore initiatives. Primarily based in Calgary, it’s recognized for long-life, low-decline belongings that assist it generate constant money flows. CNQ inventory is at the moment buying and selling at $43.14 per share with a market cap of $90.2 billion. On the brighter aspect, the current decline in its inventory has made its annualized dividend yield look extra enticing, which at the moment stands at 5.5%.
Now, regardless of CNQ inventory being down over 17% from its 52-week excessive, the corporate hasn’t proven any indicators of weak spot. Actually, Canadian Pure Assets reported record-breaking manufacturing within the first quarter of 2025, with its whole output reaching 1.6 million barrels of oil equal per day. That included document quarterly artificial crude oil manufacturing of 595,000 barrels per day with the assistance of excessive utilization at its oil sands operations and strategic upgrades accomplished final 12 months.
Financials stay robust
The corporate’s first-quarter financials have been simply as spectacular as its operational outcomes. Through the quarter, its adjusted earnings got here in at $2.4 billion or $1.16 per share. It additionally reported adjusted funds movement of $4.5 billion, exhibiting its means to persistently generate robust money movement, even in a barely weaker pricing atmosphere.
Larger manufacturing volumes, higher value management, and robust realized costs have been a few of the key elements that helped Canadian Pure Assets publish robust financials final quarter. Its artificial crude offered for over $95 per barrel throughout the quarter, which considerably lifted its margins. In the meantime, decrease vitality prices and excessive utilization drove down its working prices throughout segments, together with a 12% year-over-year drop in its oil sands mining prices and a 20% drop in thermal in-situ operations.
These elements make it much more enticing
In recent times, Canadian Pure Assets has been stepping up manufacturing whereas discovering higher, extra environment friendly methods to function. The corporate lately lowered its 2025 capital finances by $100 million with out reducing into its manufacturing plans. It’s additionally seeing constructive outcomes from its Duvernay acquisition, the place it expects better-than-planned manufacturing and price financial savings this 12 months.
As well as, its oil sands mining operations are among the many most cost-effective within the business, with long-life belongings making up nearly all of manufacturing. In brief, Canadian Pure Assets has the size, money movement, and operational self-discipline to experience by market cycles — whereas paying traders a rising stream of dividends. These dividends have been elevated for 25 consecutive years. These elements make it my prime worth choose proper now.
