transcanada

TRANSCANADA CORP. $49.44 (Toronto symbol TRP; Shares outstanding: 708.9 million; Market cap: $36.0 billion; TSINetwork Rating: Above Average; Dividend yield: 4.2%; www.transcanada.com) still hopes its Keystone XL pipeline will be approved, even though Alberta’s new NDP government has withdrawn the province’s support for the project.

Keystone XL would pump crude from Alberta’s oil sands to the U.S. Gulf Coast. Due to various delays, the company now expects Keystone XL to cost $8.0 billion U.S.

Meanwhile, TransCanada has improved its efficiency and adopted new technologies, both of which are helping it pump more oil through its existing Keystone pipeline between Alberta and refineries in Illinois.

...

Adding strength with timely U.S. acquisitions, Royal Bank and TD Bank bolster their status as solid blue chips stocks in a sluggish economy.

TRANSCANADA CORP. $48 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 709.0 million; Market cap: $34.0 billion; Price-to-sales ratio: 3.2; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.transcanada.com) wants to build the Energy East pipeline, which would pump oil from Alberta to Eastern Canadian refineries. In response to environmental concerns and political opposition, TransCanada has adjusted the route and scrapped plans to build an export terminal in Quebec. These moves will certainly increase Energy East’s $12-billion cost; the company has already spent $700 million on the project. If regulators approve, the new pipeline could begin operating in 2020. TransCanada is a buy.

At a slow time for energy stocks, we like Pembina Pipeline and Veresen for their high yields and readiness to invest in new projects.

TRANSCANADA CORP. $49.44 (Toronto symbol TRP; Shares outstanding: 708.9 million; Market cap: $36.0 billion; TSINetwork Rating: Above Average; Dividend yield: 4.2%; www.transcanada.com) still hopes its Keystone XL pipeline will be approved, even though Alberta’s new NDP government has withdrawn the province’s support for the project. Keystone XL would pump crude from Alberta’s oil sands to the U.S. Gulf Coast. Due to various delays, the company now expects Keystone XL to cost $8.0 billion U.S. Meanwhile, TransCanada has improved its efficiency and adopted new technologies, both of which are helping it pump more oil through its existing Keystone pipeline between Alberta and refineries in Illinois....

TRANSCANADA CORP. $51 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.9 million; Market cap: $36.2 billion; Price-to-sales ratio: 3.5; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.transcanada.com) still hopes its Keystone XL pipeline will be approved, even though Alberta’s new NDP government has withdrawn the province’s support for the project. Keystone XL would pump crude from Alberta’s oil sands to the U.S. Gulf Coast. Meanwhile, the company has improved its efficiency and adopted new technologies, both of which are helping it pump more oil through its existing Keystone pipeline between Alberta and refineries in Illinois. TransCanada recently freed up 10,000 to 15,000 barrels on this 590,000-barrel-a-day line. Long-term contracts account for 90% of Keystone’s current capacity, so the extra space will help TransCanada meet demand for urgent shipments. TransCanada is a buy.

ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $23.07 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highestyielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of the ETF’s assets. The fund’s MER is 0.55%, and it yields 4.5%. The fund’s top holdings are CIBC, 8.5%; Bank of Montreal, 6.3%; Royal Bank, 6.3%; Bank of Nova Scotia, 5.4%; BCE, 5.3%; Laurentian Bank of Canada, 4.4%; IGM Financial, 4.3%; TD Bank, 4.1%; National Bank, 4.1%; Rogers Communications, 4.1%; and TransCanada Corp., 4.0%.

The ETF holds 53.7% of its assets in financial stocks. The top Canadian finance stocks have sound prospects, but if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.

...

TRANSCANADA CORP. $51 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.9 million; Market cap: $36.2 billion; Price-to-sales ratio: 3.5; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.transcanada.com) still hopes its Keystone XL pipeline will be approved, even though Alberta’s new NDP government has withdrawn the province’s support for the project. Keystone XL would pump crude from Alberta’s oil sands to the U.S. Gulf Coast. Meanwhile, the company has improved its efficiency and adopted new technologies, both of which are helping it pump more oil through its existing Keystone pipeline between Alberta and refineries in Illinois. TransCanada recently freed up 10,000 to 15,000 barrels on this 590,000-barrel-a-day line. Long-term contracts account for 90% of Keystone’s current capacity, so the extra space will help TransCanada meet demand for urgent shipments. TransCanada is a buy....

Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

TRANSCANADA CORP. $49.92 (Toronto symbol TRP; Shares outstanding: 708.9 million; Market cap: $35.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.2%; www.transcanada.com) expects to start building a 900-kilometre pipeline in the next few months to pump natural gas from northeastern B.C.’s Montney region to a planned liquefied natural gas (LNG) terminal near Prince Rupert, B.C. This terminal, owned by a consortium led by Malaysian energy company Petronas, will convert the gas to a liquid. Tankers will then ship it to Asian markets. TransCanada will spend $5 billion on this pipeline. The LNG terminal still needs certain environmental and regulatory approvals, but TransCanada expects to have the line ready by 2020....