The Panic-Proof Portfolio (Stockchase Research)Canadian Natural RsrcsCNQ.TOTOP PICKFeb 02, 2023

It made a new high a year ago and then consolidated last year. It generates huge amounts of cash, pays down debt, and has very long life assets. It pays a great dividend with 20% dividend growth and 20% earnings growth.     Buy 18  Hold 8  Sell 0

Has been fairly flat. He owns and prefers SU in the senior sector. He also likes the mid-caps a bit better.

He's bullish energy stocks and is overweight them. If you're long-term, you can buy CNQ anytime. It's one of the best-managed oil patch companies..

Owns shares in company. Return of capital structure has been excellent for shareholders. Among lowest cost producer in Canada. Very strong management team that is owner/operated. Good for long term investors. Expecting dividend yield to rise. 

Checks all the boxes. Most widely owned name in Canada. Has done phenomenally well. Fair multiple is 7x, yet trades at 6.5x. Sees only 9% upside, not enough in such a volatile sector. He sold in early November.

Oil is the safest of all the resource categories. Here are 2 names that will let you sleep at night.

Big fan of CNQ: best in class in execution, quality assets, aristocrat in dividend growth. 

TOU doesn't give the upfront, regular dividend, but has been generous with special dividends. Capable of delivering in high single-digit range in terms of total yield.

Really likes. So much free cashflow has let them crush their debt. Increasing dividends over next 2-3 years. Everything's pointing to a good oil market, and CNQ's capital structure is in place. Best in class.

The caller asked about his preference between Tourmaline and CNQ. Both are the highest quality oil and gas companies in Canada. Tourmaline is superbly run but is natural gas weighted and moves around a lot along with the price of natural gas. CNQ is more diversified and therefore its stock price is steadier.

Wonderful Canadian and investment story. Returning more and more to shareholders. Any increase to oil price should go to its bottom line. Balance sheets will be stronger, will let them weather any drop in prices. Still buying.

High quality, good operations in oil and gas, mostly in western Canada. High returns. Energy is very defensive now, but is also cyclical, so results can be volatile. Expects oil prices to remain high for a while. Are generating lots of free cash, so could raise the dividend past 4.3%, buyback shares and buy companies. But shares are at all-time highs. Take profits and buy on dips.

Natural gas is entering seasonality, especially November. CNQ has gas exposure. The chart is positive, breaking out recently after consolidating in recent years. 

Very strong management team. Excellent assets. Shareholder friendly. Lots of land. 

Excellent company that has sold shares in due to strength in price. Better names in sector for capital appreciation. Good for dividend investors. Currently trading at 6x cash flow. Expecting debt target to be met in the next few weeks. 100% of free cash flow will be returned to shareholders of 2024. Very strong management team.