Topic: How To Invest

Dividend Advisor Hotline – Friday, November 3, 2017

Article Excerpt

TRANSCANADA CORP., $61.16, Toronto symbol TRP, operates a 90,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,250 kilometers of crude oil pipelines and 17 power plants. Starting with the April 2017 payment, TransCanada increased its quarterly dividend by 10.6%, to $0.625 a share from $0.565. The new annual rate of $2.50 yields a high 4.1%. The company has now agreed to sell its eight solar power facilities in Ontario to Axium Infrastructure Canada II Limited Partnership. TransCanada will receive $540 million when it completes the sale later this year. To put that amount in context, the company earned $659 million, or $0.76 a share, in the second quarter of 2017. TransCanada will use the cash to fund $24 billion worth of other projects. The additional cash flow from those new assets should let the company raise its dividend by 8% to 10% each year through 2020. The dividend has grown an average of…