Canadian Natural Resources Stock And 2 Dividend Picks Built For Higher Bond Yields

Central banks in the US and Europe are leaning toward tighter policy as they respond to persistent inflation, and that keeps bond yields high and volatility alive. Reliable income suddenly feels more valuable. Dividend powerhouses with yields above 5% and well-covered, stable payouts can help you stay invested while being paid to wait. This article walks through three such stocks from the screener that may warrant a closer look.

The three stocks highlighted below are just a sample from this idea, and the full screen surfaced 8 more companies with similarly compelling dividend profiles and stories that are not covered here. To see the complete list and refine your own shortlist, head straight into the Dividend Powerhouses (3%+ Yield) screener to identify candidates, analyze their income strength, and focus on the highest conviction opportunities.

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, and its cash flows from this upstream portfolio fund the high, regular dividends targeted by the Dividend Powerhouses (3%+ Yield) screener. The company generates all of its approximately CA$1.2b in revenue from oil and gas exploration and production, entirely in Canada, which keeps the business model relatively straightforward. Peyto is a mid cap stock with a market value of about CA$5.2b.

Income focused investors may want to look at Peyto Exploration & Development because its Alberta gas assets, LNG linked contracts and low cost operations support substantial monthly dividends that have recently been confirmed and even raised. The company is paying down debt and reporting strong funds from operations, which can help underpin those payouts, yet it still trades on undemanding earnings multiples. The trade off is meaningful exposure to gas prices, regional infrastructure issues and policy costs, along with a mixed dividend history and recent insider selling. If you want to understand whether the current high yield looks durable, the details behind its cash flow stability and LNG exposure matter a lot more than the headline payout.

Peyto’s high monthly yield and low cost profile can look irresistible. However, the real story lies in the cash flow mathematics. Get the full picture in the 4 key rewards and 3 important warning signs (1 is major!)

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources is one of Canada’s largest oil and gas producers, using its upstream operations in crude oil, natural gas and NGLs to generate the cash flows that support its dividend profile. Most revenue comes from Exploration and Production in North America at about CA$21.3b and Oil Sands Mining and Upgrading at about CA$20.8b, with smaller contributions from North Sea and Offshore Africa assets and roughly CA$1.0b from Midstream and Refining. The company is a large cap stock with a market value of about CA$146.0b.

Income investors looking at the Dividend Powerhouses theme may be drawn to Canadian Natural Resources because its oil and gas portfolio is throwing off enough cash to fund a long record of dividend increases and substantial buybacks, while recent quarters showed record production, strong oil sands performance and rising guidance for 2026 output. At the same time, the dividend story is closely tied to commodity prices, oil sands costs, regulatory pressure and pipeline capacity. Analysts expect both earnings and revenue to decline over the next few years. For investors who want a closer look at how those moving parts affect dividend stability, there is much more to unpack on cash flow quality, capital discipline and the company’s capital return plans.

Canadian Natural Resources has cash returns tied tightly to large North American and oil sands operations, yet the real story is how future payouts, buybacks and production plans fit together. Get the full analysis report for Canadian Natural Resources

Manulife Financial (TSX:MFC)

Manulife Financial is a global insurance and wealth management company that pays a regular dividend supported mainly by recurring cash flows from its Wealth & Asset Management and Insurance & Annuity businesses. This profile aligns with the focus of the Dividend Powerhouses theme. It earns about CA$7.2b from Global Wealth & Asset Management, CA$4.8b from Asia, CA$3.2b from Canada and CA$0.5b from the U.S., with a smaller CA$0.8b contribution from Corporate and Other activities. The company is a large cap stock with a market value of roughly CA$97.2b.

Manulife Financial provides a 3.27% yield that is backed by fee based wealth management and insurance earnings, regular dividend increases and ongoing buybacks, such as the CA$1.4b returned in Q2 2026. At the same time, there are notable risks, including credit exposure in U.S. loan and real estate portfolios, regulatory changes in Asian retirement markets and the challenge of integrating private credit acquisitions while maintaining targeted returns. For investors seeking income along with exposure to a valuation that is described as discounted and to growing Asian and retirement businesses, a central consideration is how secure that dividend appears after examining the earnings mix, capital ratios and emerging risks in more detail.

Manulife Financial’s mix of fee based wealth and insurance earnings could be masking where future growth really comes from. See how the dividend story lines up with the analyst forecasts for Manulife Financial

Seeking Alternatives Before The Crowd Moves

Fresh ideas move first. By the time a breakout stock hits headlines, the best entry often passed. Scan these under the radar lists while the data is fresh.

• Spot earlier momentum in companies quietly building long term potential through the 8 high quality undiscovered gems before they get caught in broad market hype and pricing shifts.
• Track where real earnings and balance sheet strength meet lower volatility using the curated 9 resilient stocks with low risk scores while these profiles are still under the radar for now.
• Target companies with stronger cash generation and valuations that still look reasonable through the hand picked 15 high quality undervalued stocks while it matters and before momentum starts flying.

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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