Wednesday, October 7, 2009

Canadian Natural Resources

I am reviewing this stock (TSX- CNQ) today as I have updated my spreadsheet with the December 2008 financials and the 2nd quarterly financials. I do not own this stock, but they have increased their dividends this year. They are also on the dividend lists of Dividend Achievers and Dividend Aristocrats (see indices). (Note the new address for Dividend Achievers list.)

The growth figures on this stock are uniformly very good. For example, the earnings on this stock have increase at the rate of 30% per year for the last 5 years and over 50% for the last 10 years. The dividends have increased for both the 5 and 7 year periods just over 21% per year. Although the dividend increases have been coming down over the last couple of years and the increase this year is only 5%. However, few companies are increasing their dividends this year.

A lot of oil and gas stocks pay out higher dividends, but more fluctuating dividends. This stock pays a low but constantly increasing dividend. No oil and gas company payout a high percentage of the cash flow. This stock is not any different. The percentage of cash flow it pays out is usually around 3% and it is always under 4%.

Turning to the Asset/Liability ratios, I find the A/L Ratio good and it has been at 1.50 or better. However, the liquidity ratios are low and at the end of 2008 it was only 0.99. This is better than it has been for a few years. The Liquidity ratio again was lower in June 2009 at just 0.95. If this ratio is not at least 1.00, it means that the current assets cannot cover the current liabilities.

Canadian Natural Resources Ltd. is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is See my spreadsheet at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets.

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