Topic: How To Invest

Dividend Advisor Hotline – Thursday, March 29, 2018

Article Excerpt

TRANSCANADA CORP., $53.28, Toronto symbol TRP, operates a 91,500-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Other operations include 4,800 kilometers of crude oil pipelines and 11 power plants. Starting with the April 2018, TransCanada will raise its quarterly dividend by 10.4%, to $0.69 a share from $0.625. The new annual rate of $2.76 yields a high 5.2%. The stock has dropped roughly 14% since the start of 2018. That’s partly because higher interest rates in Canada and the U.S. will make it more expensive for the company to finance its new projects. As well, U.S. regulators recently eliminated a tax break for pipeline operators. TransCanada owns its U.S. pipelines directly, as well as through its 25.7% stake in affiliate TC PipeLines LP (New York symbol TCP). However, the ruling does not apply to negotiated tolls, which account for about half of TransCanada’s U.S. gas pipeline revenue. The company expects that figure to rise to 65% in…