TC Energy expands in Mexico

Article Excerpt

TC ENERGY CORP. $66 is a buy. The company (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 983.0 million; Market cap: $64.9 billion; Price-to-sales ratio: 4.8; Dividend yield: 5.5%; 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. Under a new deal with Mexico’s state-owned power company CFE, TC Energy will construct a new natural gas pipeline that will connect the ports of Tuxpan and Coatzacoalcos. The new line will cost $5 billion. Contracts like this typically include fixed shipping rates that guarantee a minimum rate of return. That cuts the risk of this project. The new line will also let TC keep increasing your dividend. The current annual rate of $3.60 a share yields a high 5.5%. TC Energy is a buy. buy…

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