Updating TC Energy Corp., Canadian Utilities Ltd. and Atco Ltd.

Article Excerpt

TC ENERGY CORP. $56 (www.tcenergy.com) is our #1 Income Buy for 2020. It’s likely incoming U.S. president Joe Biden will cancel the company’s proposed Keystone XL pipeline, which would pump crude from Alberta to U.S. Gulf Coast refineries. However, the company would probably use the materials set aside for Keystone XL on other projects. As well, the cancellation should not impact TC’s plan to raise the annual dividend rate by 8% to 10% in 2021, and by 5% to 7% for 2022 and subsequent years. TC Energy is a buy. CANADIAN UTILITIES LTD. $32 (www.canadianutilities.com) is a buy. The firm distributes electricity and natural gas in Alberta and Australia. It also owns or invests in 5 power plants—1 in Canada, 2 in Australia and 2 in Mexico. ATCO (see below) owns 52.2% of the company. Revenue in the third quarter of 2020 fell 17.9%, to $727 million from $885 million, due to asset sales. Earnings also fell 30.8%, to $0.27 from…

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