Topic: How To Invest

Dividend Advisor Hotline – Friday, June 26, 2020

Article Excerpt

TC ENERGY INC., $57.15, Toronto symbol TRP, is a buy. The company generates steady cash flow for investors mainly through a 92,600-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 10 power plants. With the April 2020 payment, TC raised your quarterly dividend by 8.0%. Investors now receive $0.81 a share instead of $0.75. The new annual rate of $3.24 yields a high 5.7%. What’s more, the company plans to raise the annual rate by 8% to 10% in 2021, and by 5% to 7% for 2022 and subsequent years. TC now plans to spend $43.4 billion on growth projects between 2020 and 2023. To put that plan in context, the company’s market cap (the total value of all outstanding shares) is $53.7 billion. The biggest of those new projects is the Keystone XL pipeline, which would pump crude from Alberta to U.S. Gulf Coast refineries. It…

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