These Dividend Stocks Work Overtime So You Don’t Have to

Wealthy people make others work for them. These dividend stocks work overtime and give shareholders the benefit of their work.

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Key Points
  • Investing in dividend stocks like Canadian Natural Resources and Power Corporation of Canada allows you to earn passive income by leveraging their business growth and dividend payouts.
  • With historical dividend growth rates and strategic share buybacks, both companies can potentially increase your annual dividend income significantly over a decade with a one-time investment.
  • 5 stocks our experts like better than Canadian Natural Resources.

The secret to becoming wealthy is to make others work for you. The math is simple. One person typically only works for eight to 10 hours a day. Even a highly skilled job that earns $500 an hour has the limitation of 10 hours a day, which limits your earnings. You might end up burning candles from both ends, working overtime to become rich only from your work income. Instead of working hard, wealthy people work smart and earn from others’ work. They look for those who are efficient and sometimes work overtime because the business is doing well. Even a 0.01% share of their work can help you earn more than you can earn alone. One way to get this share is through dividend stocks.

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Dividend stocks that work overtime for you

Some companies grow their income through expansion and operational efficiency and pay a portion of their free cash flow (FCF) as dividends.

Canadian Natural Resources

Canadian Natural Resources (TSX: CNQ) increased production from the new assets it acquired in December 2024. In 2025, it worked overtime, which improved its overall efficiency in the following manner:

  • It completed the turnaround of the Athabasca Oil Sands Project five days ahead of schedule and on budget.
  • Acquired Montney assets with a capacity of 32,000 barrels of oil equivalent (BOE)/day for $750 million over and above its planned capital budget for 2025.
  • Drilled 197 net crude oil and natural gas producer wells in the first six months of 2025, 32 more than the same time last year.

The outcome was an 82% year-over-year increase in net earnings in the first half of 2025. The company passed on the benefit to shareholders by increasing its annual dividend per share by 9.9%. The company has been regularly paying dividends for 25 straight years, growing them at a compounded annual growth rate (CAGR) of 21%.

It is channelling more than 30% of its FCF to deleverage its balance sheet, which could help it keep growing its FCF. Moreover, the company repurchased shares worth $1 billion as of August 6 this year and will continue to buy more shares. This will help it pay more dividends per share from the FCF. The growing FCF and falling share count will help the company to continue paying you a larger dividend every year.

Power Corporation of Canada

Power Corporation of Canada (TSX: POW) increased its dividend per share by 9% in 2025. Its operating companies, Great-West Lifeco and IGM Financial, exceeded their medium-term objectives.

  • Great-West Lifeco increased its net earnings per share (EPS) by 12% year over year to $1.24, exceeding its medium-term objective of 8-10% growth. Hence, the company plans to repurchase another $500 million shares over and above the previously announced $500 million.
  • IGM also increased its adjusted EPS by 15%, exceeding its medium-term objective of 9% growth, and is well ahead of its target to buy back $114 million worth of shares in 2025.
  • Alternative investment platforms, Sagard and Power Sustainable, launched new funds and grew through acquisitions and strategic partnerships.

All the businesses delivered returns to shareholders through dividends and share buybacks. POW is passing on the growing dividends of operating companies to its shareholders. The company has grown its dividends at an average annual rate of 7% in the last 11 years and can continue doing so.

Investor takeaway

The above two dividend stocks are working efficiently to grow their income and even passing on the benefit of their work to shareholders. By investing in these stocks, you can also avail yourself of the reward of their work.

A $10,000 investment in each of the two stocks can help you earn $954.65 in annual dividends in 2025. If POW and CNQ grow their dividends at an average annual rate of 7% and 10%, respectively, for the next 10 years, your one-time $20,000 investment can earn you $2,214 in annual dividends by 2035.

Company NameNumber of SharesStock PriceDividend per share in 2025Annual dividend income in 2025Expected Dividend per share in 2035Annual dividend income in 2035
POW170$58.74$2.450$416.50$4.82$819.40
CNQ229$43.58$2.35$538.15$6.09$1,394.61
Total dividend income   $954.65 $2,214.01

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

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