New projects will fuel your returns

Article Excerpt

TC ENERGY CORP. $61 is a buy. The company (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 939.0 million; Market cap: $57.3 billion; Price-to-sales ratio: 4.6; Dividend yield: 5.7%; TSINetwork Rating: Above Average; www.tcenergy.com) operates a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants. U.S. president Joe Biden recently cancelled TC Energy’s proposed Keystone XL pipeline. As a result, it wrote down that project by $2.2 billion. However, if you factor out the government of Alberta’s stake in the project, TC estimates its net financial exposure is roughly $1.0 billion. Excluding all unusual items, TC’s overall earnings were largely unchanged in the first quarter of 2021 at $1.11 billion. Per-share earnings dipped 1.7%, to $1.16 from $1.18, on more shares outstanding. Revenue also fell 1.1%, to $3.38 billion from $3.42 billion, However, TC continues to work on…

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