Why I'm Waiting Several Months to Buy My No. 1 Income Stock

• AI technologies are enabling the U.S. to smash aged accumulation records with overmuch smaller rig counts.

• Oil prices are already down 10% successful the past 3 months contempt galore geopolitical flare-ups.

• We whitethorn beryllium successful the aboriginal days of a proviso daze not seen since 2014 and 2015, erstwhile lipid prices crashed.

• 10 stocks we similar amended than Canadian Natural Resources ›

If a banal tin rise its dividend by 9,300% successful 24 years, it has my attention. If it presently pays a output much than quadruple that of the mean S&P 500 company, I'm interested. If it's raised its dividend by an mean of 21% a twelvemonth this century, sometimes ramping up payouts aggregate times a year, I'm precise interested. And if it's got a price-to-earnings ratio of conscionable 15, making it fractional arsenic costly arsenic the broader market, I'm wondering what the drawback is.

The banal I've described is Canadian Natural Resources (NYSE: CNQ), an lipid and earthy state shaper based successful Calgary, Canada. And though I'm itching to bargain shares, determination is unluckily a catch. Through nary responsibility of its own, this institution whitethorn soon deed a unsmooth spot arsenic the lipid and state assemblage could beryllium heading toward a daze not seen since a decennary ago, erstwhile lipid prices crashed 70% from their peak.

Of course, backmost then, not lone did Canadian Natural Resources summation its dividend, but it besides emerged from the situation stronger than earlier acknowledgment to susceptible absorption and a bid of savvy acquisitions. I judge that collapsing lipid prices volition beryllium a blessing successful disguise for this company--but the blessing volition beryllium precise good disguised.

For the archetypal fewer months of 2026, I expect shares to inclination substantially lower. Here's why.

The terms of West Texas Intermediate (WTI) crude lipid has slipped 10% implicit the past 3 months, contempt a big of factors that would ordinarily boost prices, from President Trump announcing a naval blockade connected sanctioned Venezuelan lipid tankers, to President Vladimir Putin rejecting a bid woody successful his warfare with Ukraine, to quality that the U.S. system is expanding astatine its fastest gait successful 2 years.

These developments would usually propulsion prices higher by restricting proviso oregon boosting demand. But not successful the Age of AI. The artificial quality (AI) gyration is taking lipid accumulation to unheard-of levels by allowing lipid companies to streamline operations and chopped costs astatine astir each signifier of the accumulation lifecycle.

It's improving the predictability of instrumentality failures, truthful reducing downtime and expediting the planting of caller wells by arsenic overmuch arsenic 90%. AI investigation is starring to immense discoveries for improved good placements, and it's adjacent helping to trim clip needed for seismic operations, which are similar geophysical "CAT scans" that firms behaviour to find lipid and state nether stone layers.