Growth plus 4.4% yield

Article Excerpt

TRANSCANADA CORP. $36.03 (Toronto symbol TRP; Shares outstanding: 687.0 million; Market cap: $24.8 billion; SI Rating: Above Average; Dividend yield: 4.4%) reported revenue of $2 billion in the three months ended March 31, 2010, down 10.2% from $2.2 billion a year earlier. Revenue fell mostly because of weaker power prices in western Canada, where TransCanada produces electricity. The company’s total earnings fell 4.5% in the quarter, to $328 million from $343 million a year earlier. Lower revenue hurt earnings, as did higher development costs on the Alaska natural-gas pipeline. Per-share earnings dropped 12.7%, to $0.48 from $0.55. That’s because the company has 11% more shares outstanding than last year, after it sold shares to raise cash for capital spending. Demand for TransCanada’s power will rise along with the economic recovery. Looking a little further ahead, TransCanada will gain from its $22 billion of planned spending on new projects. These include the Keystone pipeline, which will pump crude oil from Alberta to refineries in Illinois. TransCanada…

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