This Dividend Aristocrat Turned $100k Into $4 Million in 25 Years

Core Viewpoint - Canadian Natural Resources (CNQ) is an underappreciated Dividend Aristocrat that has outperformed the Nasdaq-100 over the past 25 years, demonstrating the power of compounding dividends [1][2]. Company Overview - Canadian Natural Resources is one of the largest independent crude oil and natural gas producers globally, operating across the entire oil and gas value chain, including exploration, production, and marketing [3]. - The company has a robust midstream infrastructure that supports its operations [3]. Dividend Strategy - CNQ has raised its dividends for 25 consecutive years, with a forward dividend yield of nearly 5% and a 5-year dividend growth rate of 22.37% annually [4]. - The company returned over CAD 6 billion in the first nine months of 2025, maintaining a forward payout ratio of 64%, indicating financial stability even in challenging market conditions [4]. Historical Performance - An investment of $100,000 in CNQ in mid-2000, with dividends reinvested, would yield an overall return of 3,925.28%, equating to over $4 million today [6]. - In contrast, a similar investment in the Invesco QQQ Trust would result in only $823,680, highlighting CNQ's superior performance [6]. Market Conditions and Future Outlook - The demand for oil and gas is expected to remain strong, particularly for North American companies like CNQ, due to ongoing re-industrialization and onshoring trends [11]. - Sanctions on certain countries post-2022 have positioned CNQ favorably, as European countries increasingly rely on North American energy sources [12]. - Analysts project that CNQ's earnings per share (EPS) will double from 2025 to 2029, indicating continued growth potential [12].