The future is bright for TRP

Article Excerpt

TRANSCANADA CORP. $56.63 (Toronto symbol TRP; Shares outstanding: 800.3 million; Market cap: $49.1 billion; TSINetwork Rating: Above Average; Dividend yield: 4.4%; www.transcanada.com) operates a 91,500-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include crude oil pipelines and power plants in Canada and the U.S. In July 2016, TransCanada completed its $13 billion acquisition of Texas-based Columbia Pipeline Group. The company also continues to work on $24 billion worth of new pipelines and other projects. In addition, it will soon decide whether to move ahead with the $8 billion Keystone XL pipeline. Thanks to extra cash flow from its new operations, TransCanada plans to increase its annual dividend by 8% to 10% each year through 2021. The shares now yield a high 4.4%. TransCanada trades at 16.7 times the $3.39 a share it will likely earn in 2018. TransCanada Corp. is a buy. buy…