Topic: How To Invest

The Successful Investor Hotline – Friday, October 9, 2020

Article Excerpt

TC ENERGY INC., $57.42, 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. In an effort to simplify its corporate structure, TC Energy has offered 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 has offered to acquire the remaining 74.5% in an all-stock offer: TC PipeLines investors will receive 0.65 of a TC Energy common share for each unit they hold. That would increase the total number of shares outstanding by about 3.7%. Based on current prices, the offer is worth…