The stocks rallied during the last week after a long bearish period. The countries are preparing to lift the strict restrictions, but some experts fear that the coronavirus epidemy will continue for a while. Still, recent rally boosted the futures, which have suffered significant losses during February and March.
After massive sell-offs, investors are looking for ways to rebuild their portfolios. Most of the stocks are in the red due to the pandemic crisis. That’s why experts advise buying companies, which can combine positive recent earnings with strong upside potential, and high-yield dividend payments.
Canadian Natural is Canada’s largest heavy crude oil producer, as well as a major independent producer of natural gas. The hydrocarbon exploration company in Canada’s energy sector owns the largest undeveloped acreage base. Furthermore, it also operates in the North Sea and off the coast of West Africa.
The company reported 1.098 billion barrels of oil equivalent in production in 2019. Despite a difficult price environment, this is 2% higher than the year before. Canadian Natural generated record cash flows of $10.3 billion over the year, with a free cash flow of $4.6 billion.
How does the company fare currently?
Canadian Natural recently issued its quarterly dividend of 42.5 cents Canadian, offering a 9.4% increase in the quarterly payment. This dividend increase is the fourth payment increase in the past three years for the stock. The annualize payment offers a yield of 9.4% at $1.27 in U.S. currency.
Furthermore, Analyst Jon Morrison noted that Canadian Natural is focused on building an enduring long-term business which is structured to handle the inevitable industry cycles. He is impressed by stocks management.
The average price target is US$22.34 for this stock, and it suggests almost 88% upside over the next 12 months. Morrison set his price target of $24.45, implying a 191% upside potential in the 12 months.