New buy to fuel TRP earnings

Article Excerpt

TransCanada recently had to write off its investment in its Keystone XL oil pipeline project after the U.S. government rejected the plan. Political pressure in Canada could also force it to cancel its huge Energy East pipeline. Despite these setbacks, TransCanada’s future looks bright. The company recently announced a big acquisition in the U.S. that should fuel its growth for years to come. As well, it will soon complete $13 billion of smaller pipelines and power plants. The projects already have long-term commitments from future customers. Those contracts cut the risk of these new ventures. TRANSCANADA CORP. $50 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 702.3 million; Market cap: $35.1 billion; Priceto- sales ratio: 3.1; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.transcanada.com) operates a 67,300- kilometre pipeline network that pumps natural gas from Alberta to Eastern Canada and the U.S. This system supplies 20% of North America’s natural gas needs. In 2015, gas pipelines…