Canadian Natural Resources Stock Leads 3 Dividend Picks Built For Long Term Income

With global growth expectations holding near 3% into 2026 and central banks broadly cautious on interest rates, many investors are looking for income sources that do not rely on short term trading or aggressive growth stories. The Dividend Powerhouses (3%+ Yield) screener focuses on companies offering dividend yields above 5% that are described as well covered, growing and stable, which can be appealing when inflation signals and policy paths remain mixed across regions. In this article, you will see 3 of the standout stocks from this screener and how each might fit into a long term income-focused portfolio.

Canadian Natural Resources (TSX:CNQ)

Overview: Canadian Natural Resources is a Calgary based oil and gas producer that acquires, develops and operates assets across Western Canada, the North Sea and Offshore Africa, supplying a wide range of products from synthetic crude and oil sands bitumen to conventional crude oil, natural gas and NGLs. These operations are supported by its own midstream pipelines and cogeneration capacity.

Operations: The company generates most of its revenue from Exploration and Production in North America at about CA$19.1b and Oil Sands Mining and Upgrading at about CA$17.4b. It reports smaller contributions from Midstream and Refining at about CA$0.8b and the North Sea Exploration and Production segment at about CA$0.2b.

Market Cap: CA$125.0b

Canadian Natural Resources stands out in the Dividend Powerhouses screener because it combines a roughly 4.2% to 4.5% yield with a long history of dividend growth and an explicit focus on returning free cash flow to shareholders through both dividends and buybacks. Recent acquisitions and cost efficiencies are supporting cash generation. At the same time, analysts expect earnings and revenue to ease over the next few years, which introduces risk if energy prices weaken or regulatory costs rise. Improving pipeline access and ongoing production projects are important factors for long term income investors who want more than just a high headline yield while still monitoring earnings quality and future demand for fossil fuels.

Canadian Natural Resources is already returning cash through dividends and buybacks, but the key question is how durable that income stream is if conditions change. Get the full picture in the 4 key rewards and 2 important warning signs (1 is major!)

Manulife Financial (TSX:MFC)

Overview: Manulife Financial is a Toronto based insurance and wealth management company that offers life and health insurance, annuities, retirement plans, mutual funds and banking products to individuals and institutions across Canada, the U.S., Asia and other international markets.

Operations: Manulife Financial generates most of its revenue from Global Wealth and Asset Management at about CA$7.1b, with additional contributions from Asia at about CA$4.5b, Canada at about CA$3.3b, Corporate and Other at about CA$0.8b and the U.S. at about CA$0.4b.

Market Cap: CA$97.2b

Income investors looking at Manulife Financial get a mix of a 3.3% dividend yield, exposure to growing retirement and insurance demand in Asia and the U.S., and a business that is leaning into AI and digital tools across its operations. Earnings have been growing, with revenue growth forecasts ahead of the wider Canadian market, while share buybacks and expansion into higher fee, capital light wealth and asset management businesses are supporting profitability. At the same time, reliance on Asian growth, credit risk in U.S. loan and real estate exposure, and regulatory changes such as Hong Kong’s eMPF reform show that earnings are not risk free. The stock’s deep discount to Simply Wall St’s estimated fair value will catch attention but also invites closer scrutiny.

Manulife Financial’s push into higher fee, capital light wealth and asset management could be masking a very different earnings profile than many investors assume, and the full story sits inside the 4 key rewards and 1 important warning sign

IGM Financial (TSX:IGM)

Overview: IGM Financial is a Winnipeg based wealth and asset manager that runs mutual funds, ETFs and other investment products for Canadian households and institutions, while also providing advice, insurance and some banking services. The company operates through brands such as IG Wealth Management and Mackenzie Investments and is ultimately controlled by Power Financial Corporation.

Operations: IGM Financial generates about CA$1.4b from Asset Management and CA$2.8b from Wealth Management, with the vast majority of its roughly CA$4.4b in revenue coming from Canada.

Market Cap: CA$18.5b

IGM Financial catches the eye in a dividend focused portfolio because it couples a 3.05% yield with record CA$343.3b in assets and positive net inflows, while pushing hard on AI and cost efficiency programs that target about CA$70m in annual savings by 2028. At the same time, heavy exposure to Canadian mutual funds, fee pressure and rising regulatory demands mean earnings quality and margins cannot be taken for granted, especially with 100% of liabilities funded by higher risk external borrowing and recent insider selling. Between its investments in platforms like Wealthsimple and ChinaAMC and a seasoned, independent board, there is more going on beneath the surface than a simple income story suggests.

IGM Financial’s record CA$343.3b in assets and push for CA$70m in annual savings could be reshaping its earnings profile, yet the real story sits inside the 4 key rewards and 1 important warning sign

The three dividend stocks covered here are only a starting point, as the full Dividend Powerhouses screen uncovers 9 more companies with equally compelling income stories inside the Dividend Powerhouses (3%+ Yield) screener. Using Simply Wall St, you can identify and analyze the specific catalysts and dividend narratives that matter most to you, so you can focus on the highest conviction ideas in this income focused group.

Take Control of Your Investment Journey

If IGM Financial or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond These Dividends?

When the next breakout list starts gaining momentum, you do not want to be caught reacting after prices are already moving. Scan fresh ideas before the crowd and consider taking action sooner rather than later.

• Spot fast moving small caps before headlines catch them, using the curated 3 AI small caps that highlights AI businesses already building real products and revenue stories.
• Focus on resilient companies while prices are still under the radar for now with the hand picked 10 resilient stocks with low risk scores focused on balance sheet strength and steadier cash flows.
• Strengthen your watchlist with companies involved in the next energy build out by running the focused 34 power grid technology and infrastructure stocks that highlights critical grid and infrastructure players.

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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