Is This the Top Dividend Stock of the 21st Century?

• Canadian Natural Resources has accrued its dividend by 9,300% since 2001.

• It has grown its dividend for 24 years astatine a 21% annualized complaint -- with nary signs of slowing.

• Gains successful productivity, on with savvy investments, could alteration akin hikes successful 2026 and beyond.

• 10 stocks we similar amended than Canadian Natural Resources ›

Average yearly gains of 21% volition adhd up implicit time. Just look astatine Warren Buffett's Berkshire Hathaway, which managed an mean yearly instrumentality of 20.9% from 1965 to 2017, according to Buffett's 2018 missive to shareholders. That mean instrumentality snowballed implicit the decades into a 2,404,748% gain.

The aforesaid compounding magic applies to the dividend paid by Canadian Natural Resources (NYSE: CNQ). Since 2001, the lipid and state institution has raised its dividend by an mean of astir 21% a year. Over that 24-year stretch, the company's dividend has swelled by 9,300%. Anyone who invested $100 successful mid-2001 and held connected to those shares would beryllium collecting $2,557 successful yearly dividends today.

Capital appreciation people followed, since those payout hikes, sustained implicit decades, are lone imaginable if net besides turn astatine a akin rate. Sure enough, Canadian Natural Resources shares person roared 4,232% higher since mid-2001.

After maturation of this magnitude, it's earthy to wonderment if the enactment is over. But determination are 3 reasons to deliberation that this prodigious dividend maturation tin proceed successful the years ahead.

As an lipid and state institution progressive successful the acquisition, exploration, development, production, and merchantability of crude lipid and earthy gas, Canadian Natural Resources has implemented vertical integration, the concern signifier pioneered by J.D. Rockefeller. Because it operates astatine each measurement of the proviso chain, from gathering earthy materials to refining, distributing, and adjacent selling them, Canadian Natural Resources has opportunities to wring retired inefficiencies astatine each signifier of the process.

The institution has besides been a earthy beneficiary of the artificial quality (AI) revolution, which has helped drillers to analyse seismic and geological information to find drilling locations overmuch much quickly, thereby slashing exploration hazard and costs. AI interpretations of good log information and seismic surveys are completing, sometimes successful specified hours, geological investigation that utilized to instrumentality months.

AI tin besides assistance expect instrumentality failures and sharply trim unplanned downtime during production, which tin outgo upstream companies an mean of $38 cardinal each year.