Dividend shares can rework your portfolio into a gradual supply of earnings, whereas additionally providing the potential for long-term progress. Notably, investing in Canadian shares which have constantly paid and raised their dividends, have resilient enterprise fashions, and generate regular earnings might be a stable technique as these corporations are almost certainly to take care of their payouts and improve them over time.

Canadian Pure Sources (TSX:CNQ) is a type of high-quality dividend shares that tick all the fitting bins. It matches the dividend technique geared toward producing sturdy passive earnings. With its sturdy fundamentals and confirmed observe file of dividend funds, the oil and gasoline producer seems well-positioned to proceed elevating dividends within the years forward, making it a compelling selection for these seeking to develop and defend their earnings stream.

The dividend observe file that retains CNQ aside

Canadian Pure Sources is among the most dependable dividend payers. Not like lots of its friends which have been pressured to pause or trim payouts throughout downturns, it has maintained and elevated its dividend. Its sturdy dividend funds are supported by high-quality property and a various manufacturing combine, which collectively generate sturdy money flows throughout completely different levels of the commodity cycle.

CNQ has uninterruptedly raised its dividend for 25 consecutive years. Its dividend has risen at a compound annual progress charge (CAGR) of 21% over that interval. To this point this yr, Canadian Pure has distributed roughly $4.6 billion to its traders. Of that, $3.6 billion got here within the type of dividends, whereas $1 billion was allotted to share repurchases.

Canadian Pure has a well-balanced and numerous portfolio of property. Whereas the vast majority of its operations are anchored in Canada, Canadian Pure additionally advantages from worldwide publicity by way of property within the UK portion of the North Sea and offshore Africa. Its manufacturing is balanced throughout a number of crude oil varieties, pure gasoline, and pure gasoline liquids (NGLs). This combine supplies the flexibleness to allocate capital the place returns are strongest, finally maximizing long-term shareholder worth.

Canadian Pure Sources pays a quarterly dividend of $0.588 per share, translating into a pretty yield of 5.2%. Whereas its inventory has pulled again from the 52-week excessive, CNQ has grown at a CAGR of roughly 37% within the final 5 years, delivering an total capital acquire of greater than 379%.

Right here’s what number of CNQ shares equal $2,000 in yearly earnings  

Canadian Pure Sources might proceed delivering increased dividends to its shareholders. CNQ will proceed to learn from its long-life, low-decline manufacturing property. Furthermore, its low alternative prices and operational effectivity will assist preserve profitability and help its dividend funds. 

The Canadian power large can even profit from its portfolio of low-risk, typical initiatives which might be fast to execute and require minimal capital. These initiatives can generate sturdy returns when market circumstances are beneficial, and so they add an additional layer of flexibility to CNQ’s progress technique.

Furthermore, Canadian Pure additionally holds a large undeveloped land base, giving it years of repeatable drilling alternatives and positioning it effectively to maintain creating worth for its shareholders.  

On the present dividend charge, holding 851 shares of Canadian Pure interprets to roughly $500 in quarterly payouts, or roughly $2,000 per yr.