We recently published a list of 15 Best Low Priced Dividend Stocks to Buy Now. In this article, we are going to take a look at where Canadian Natural Resources Limited (NYSE:CNQ) stands against other best low priced dividend stocks to buy now.
Concerns over an escalating trade war and rising geopolitical tensions have triggered waves of selling in stock markets over the past week. The United States has been at the center of these developments, as President Donald Trump intensified his rhetoric on trade tariffs, which are expected to raise costs for both consumers and businesses domestically and abroad.
Since reaching a peak in mid-February, the broader market—an index tracking America’s largest companies—has declined by 7.3% as of March 17 and is down 3% for 2025. Meanwhile, the Nasdaq, which focuses on technology stocks, has fallen 7.2% this year. As a result, the US market has now dropped below its levels prior to the so-called “Trump bump” in November, when Trump’s election victory initially drove markets higher.
READ ALSO: 10 Defensive Dividend Stocks To Buy During Market Sell Off
The year 2025 has been marked by significant events, ranging from corporate earnings and guidance updates to concerns surrounding DeepSeek and the fluctuating stance on tariffs by President Donald Trump. These developments have contributed to heightened market volatility, creating uncertainty for investors. A report by Morningstar suggested that investors should prioritize fundamental analysis, adopt a long-term perspective, and remain mindful of valuations. In line with this approach, the firm’s analysts continue to assess the long-term fundamentals shaping sector outlooks and evaluate the key assumptions driving valuation models. Given the ongoing uncertainty surrounding the potential implementation of tariffs, adjustments to projections and valuations will be made once there is greater clarity on the extent of the tariffs and their expected duration.
Dividend stocks have gained popularity during market downturns, as they offer shareholders a steady source of income. Following a period where growth stocks dominated, interest in dividend investing has been on the rise. According to a report by Franklin Templeton, US-listed dividend-focused exchange-traded funds (ETFs) saw a significant increase in investor interest, with average monthly net inflows reaching nearly $3.3 billion in the six months leading up to January 31, 2025. This marks a sharp contrast to the $107 million recorded during the same period the previous year.
Amid an uncertain global economic environment, investors are gravitating toward more stable assets to create balanced portfolios. Dividend stocks, particularly those backed by strong fundamentals, are known for generating consistent and predictable cash flows. Since these cash flows play a crucial role in equity valuation models, determining the intrinsic or fair value of dividend-paying stocks is generally more straightforward than valuing growth stocks.
The Dividend Aristocrat Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has surged by over 3% in 2025, so far, compared with a nearly 3% decline of the broader market, as of the close of March 17.
Our Methodology
For this list, we screened for dividend stocks with forward P/E ratios of less than 21 and share prices below $50, as of March 17. From the group, we picked 15 companies for their robust financial health, consistent dividend track records, and stable balance sheets, making them attractive options for income-focused investors. The stocks are ranked according to their share prices, as of the close of March 17.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A vast oil rig pumping crude oil during a sunset, emphasizing the company’s focus on oil & gas exploration and production.
Canadian Natural Resources Limited (NYSE:CNQ)
Share Price as of the Close of March 17: $29.86
Forward P/E Ratio as of March 17: 13.02
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian oil and natural gas company with operations in Western Canada, the UK portion of the North Sea, and Offshore Africa. The company has been actively expanding through strategic acquisitions, capitalizing on opportunities to enhance its future cash flow. The company finalized its purchase of Chevron’s Alberta assets at the end of 2024, which included a 20% stake in the Athabasca Oil Sands Project (AOSP) and a 70% operated interest in light crude oil and liquids-rich natural gas assets within the Duvernay play.
The year 2024 was a milestone for Canadian Natural Resources Limited (NYSE:CNQ), as it achieved record-breaking annual average production of over 1.36 million barrels of oil equivalent per day (boed), including an all-time high in annual liquids production, exceeding one million barrels per day. Financially, the company delivered strong results, reporting an adjusted earnings per share of C$2.34 in the fourth quarter, surpassing analysts’ expectations of C$2.15.
Canadian Natural Resources Limited (NYSE:CNQ)’s cash position also remained stable. In the most recent quarter, the company generated over $3.4 billion in operating cash flow, up from $3 billion in the previous quarter. Its free cash flow at the end of FY24 came in at $4.5 billion. This cash generation allowed the company to return $1.7 billion to shareholders through dividends and share repurchases.
On March 6, Canadian Natural Resources Limited (NYSE:CNQ) declared a 4.4% hike in its quarterly dividend to C$0.5875 per share. This marked the company’s 25th consecutive year of dividend growth. During this period, it has raised its payouts at a CAGR of 21%. The stock supports a dividend yield of 5.51%, as of March 17.
Overall, CNQ ranks 5th on our list of best low priced dividend stocks to buy now. While we acknowledge the potential of CNQ as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CNQ but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
