Topic: How To Invest

The Successful Investor Hotline – Friday, December 18, 2020

Article Excerpt

TC ENERGY INC., $54.81, Toronto symbol TRP, is our #1 Income Buy for 2020. TC 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. The company has secured a new agreement to acquire TC PipeLines, LP (New York symbol TCP), a U.S. master limited partnership that owns or invests in eight natural gas pipelines. These pipelines serve customers in 22 states and supply 13% of the daily gas needs of the U.S. Right now, TC Energy owns 25.5% of TC PipeLines. It will buy the remaining 74.5% in an all-stock offer: TC PipeLines investors will receive 0.70 of a TC Energy common share for each unit they hold. That’s more than TC’s original offer of 0.65 a share. Based on current prices, the new offer is worth $30.04 U.S. per unit of TCP PipeLines. That’s…

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