Topic: How To Invest

Dividend Advisor Hotline – Friday, November 27, 2020

Article Excerpt

TC ENERGY INC., $59.31, Toronto symbol TRP, is a buy. TC generates steady cash flow for investors mainly through 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 7 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 5.5%. What’s more, the company plans to raise the annual dividend rate by 8% to 10% in 2021, and by 5% to 7% for 2022 and subsequent years. TC is spending $37.2 billion on growth projects between now and 2023. Those investments are spread out among natural gas pipelines ($22 billion), oil pipelines ($13 billion), and power plants and storage ($2 billion). These projects are backed by regulated rates and long-term contracts. To put that plan in context, the company’s market cap (the total value…

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