Canadian Natural Resources Stock and 2 High Yield Dividend Picks

With global bond markets swinging on shifting inflation expectations and long term yields, reliable income has fresh appeal. Cash rates move and capital values can be choppy, yet a well covered dividend stream can feel like the one part of your portfolio that keeps turning up. This article looks at three stocks from the Dividend Powerhouses screener that currently offer 3%+ yields and a record of stable, growing payouts.

The three stocks covered below are only a sample of the Dividend Powerhouses idea. The full screen surfaces 8 more companies with similarly strong dividend stories that are not included here. To see the complete list and quickly identify which ones best fit your income goals, head straight into the Dividend Powerhouses (3%+ Yield) screener.

Peyto Exploration & Development (TSX:PEY)

Peyto Exploration & Development is a Calgary based producer focused on natural gas and natural gas liquids in Alberta’s Deep Basin, which is the cash engine behind its high yield dividend profile. The company generates essentially all of its CA$1.2b in revenue from oil and gas exploration and production, giving investors a pure play on this upstream cash flow. With a market value of about CA$5.2b, Peyto is a mid sized Canadian energy company with scale, but still meaningful room for company specific outcomes to matter.

Income focused investors may want Peyto on their radar because its Deep Basin gas assets directly fund a high yield dividend that has a long monthly track record and was increased again with the Q2 2026 results. Growing production, long term gas contracts linked to LNG exports and a disciplined cost base all support that payout, while a relatively low P/E and strong margins hint at value that is not fully reflected in the share price. The catch is that analysts expect earnings to soften over the next few years and the dividend record is not perfectly smooth, so you are trading attractive income and valuation against commodity exposure, policy risk in Alberta and questions about how durable today’s cash flows will be further out.

Peyto’s high yield and Deep Basin cash engine can look like a simple income story, yet the real insight sits in how that dividend stacks up against future earnings, capital needs and commodity swings in the 4 key rewards and 3 important warning signs (1 is major!)

Build your own high-yield dividend shortlist

Peyto Exploration & Development and the two other stocks in this article all came from a single screener, but your best ideas will often come from filters tailored to you. Use our Screener to combine yield, valuation, growth and risk metrics into your own shortlist, or tap into our curated Investing Ideas.

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources is a large Canadian oil and gas producer that uses cash from its crude oil, natural gas and NGL operations to support a high, well covered dividend that fits the Dividend Powerhouses theme. Most revenue comes from Exploration and Production in North America at about CA$21.3b, with a further CA$20.8b from Oil Sands Mining and Upgrading, while Midstream and Refining contributes around CA$1.0b and smaller amounts come from the North Sea and Offshore Africa. The company has a market value of roughly CA$141.2b, which puts it among the bigger players in the global energy sector.

Canadian Natural Resources could appeal if you want a large scale dividend payer where the payout is rooted in long life oil sands and conventional assets, backed by 26 years of consecutive dividend increases and ongoing share buybacks. Recent Q2 2026 results showed record production, stronger cash flow and raised production guidance, which all support the current yield and indicate a continued focus on returning cash to shareholders. The trade off is clear. Heavy exposure to oil sands, commodity prices, regulatory pressure and future energy transition trends can all affect how secure those cash flows are over time. The full story on how these strengths and risks compare is covered in the detailed income, cash flow and payout analysis that investors often review next.

Canadian Natural Resources keeps lifting production, cash flow and dividends, yet the full income story is still easy to underestimate. See how the long life assets and payout stack up in the 4 key rewards and 2 important warning signs (1 is major!)

Manulife Financial (TSX:MFC)

Manulife Financial is a diversified insurer and asset manager that uses long duration insurance and annuity cash flows to support a 3.31% dividend, which fits the Dividend Powerhouses focus on well covered, stable payouts. It generates about CA$7.2b in revenue from Global Wealth and Asset Management, CA$4.8b from Asia, CA$3.2b from Canada and CA$0.5b from the U.S., with a further CA$0.8b from Corporate and Other, so income investors are not relying on a single region or product. The company has a market value of roughly CA$99.7b.

Income focused investors who want more than a pure bond proxy may find Manulife Financial interesting because its insurance and annuity franchise feeds reliable cash flows into a 3.31% dividend, while growth in Asia and private markets aims to lift fee income over time. Recent moves such as the long term care reinsurance deal with Munich Re and awards for AI adoption in Asia point to active risk management and efficiency gains. At the same time, there are still questions around credit risk, regulatory changes and how much of the discounted valuation really reflects those uncertainties. The full story is in how these steady dividends, growth plans and risk factors balance out for long term income seekers.

Manulife Financial’s 3.31% yield and Asia growth story can look straightforward, yet the real twist is how future fee income and capital needs interact in the analyst forecasts for Manulife Financial that could reshape what the market is missing.

Seeking Fresh Alternatives For Your Income?

Markets move fast and the next breakout income ideas rarely stay under the radar for long. Scan these fresh stock lists before the crowd catches on and act now.

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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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