New projects should spur dividends

Article Excerpt

TransCanada continues to work on $27.6 billion worth of new pipelines and other projects that it expects to complete in the next four years. In addition, the company will now move ahead with the controversial Keystone XL pipeline; it should cost at least $8.3 billion U.S. These are big commitments. However, long-term shipping contracts with oil and gas producers helps cut risk for TranCanada’s new projects. The company’s extra cash flow should also let it keep raising its dividend. TRANSCANADA CORP. $53 (Toronto symbol TRP; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 907.3 million; Market cap: $48.1 billion; Dividend yield: 5.2%; Dividend Sustainability Rating: Highest; www.transcanada.com) operates a 91,500-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Other operations include 4,800 kilometers of crude oil pipelines and 12 power plants. Founded to 1951 develop the TransCanada Pipeline, which pumps natural gas from Western Canada to Eastern markets Increased the dividend for 18 straight years Paid out 26.9% of…