Updating your Income stocks: TC Energy, South Bow and Molson Coors Canada

Article Excerpt

TC ENERGY CORP. $71 (www.tcenergy.com) is a buy. The company now plans to spend $900 million U.S. to expand its gas pipeline system that supplies natural gas to power plants in the U.S. Midwest. That will let it tap into growing demand for power by datacentres that run energy-intensive artificial intelligence programs. Moreover, long-term contracts cut the risk of these projects. That will also support TC’s plan to raise its annual dividend by 3% to 5% annually. The current rate of $3.40 a share yields 4.8%. TC Energy is a buy. SOUTH BOW CORP. $36 (www.southbow.com) is a hold. This new firm, spun off from TC Energy in October 2024, has now re-started its Keystone pipeline after shutting it down due to a rupture in North Dakota that spilled 3,500 barrels of oil in a rural area. It’s unlikely that the shutdown will force South Bow to cut its $2.00 U.S.-a-share dividend, which yields a high 7.7%. However, its high debt load (106% of its market cap) adds…