Topic: How To Invest

Dividend Advisor Hotline – Friday, August 4, 2023

Article Excerpt

TC ENERGY INC., $48.19, Toronto symbol TRP, remains a buy. TC generates steady cash flow for investors mainly through a 93,700-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 nine power plants. With the April 2023 payment, the company raised your quarterly dividend by 3.3%, to $0.93 a share from $0.90. The new annual rate of $3.72 yields a high 7.7%. TC has now raised its dividend rate each of the past 23 years. TC has now agreed to sell a 40% stake in its U.S.-based Columbia natural gas pipeline systems for $5.2 billion. That price is equal to 10.5 times Columbia’s EBITDA (earnings before interest, taxes, depreciation and amortization), which is below the roughly 17 times EBITDA that TC paid for Columbia in 2016. The sale is part of the company’s plan to sell at least $5 billion of its assets to pay down its debt…