TransCanada has lots of growth appeal

Article Excerpt

TransCanada is now challenging the U.S. government’s recent decision to block its proposed Keystone XL pipeline, which would have pumped crude oil from Alberta to the U.S. Gulf Coast. Even if it has to abandon this project, the company still has many other projects under development. These investments will also let TransCanada increase its dividend by between 8% and 10% each year through 2020. TRANSCANADA CORP. $44.61 (Toronto symbol TRP; Shares outstanding: 709.0 million; Market cap: $31.6 billion; TSINetwork Rating: Above Average; Dividend yield: 4.7%; www.transcanada.com) operates 68,000 kilometres of natural gas pipelines and over 11,800 megawatts of power generation in Canada and the U.S. In the three months ended September 30, 2015, the company earned $440 million, or $0.62 a share, down 2.2% from $450 million, or $0.63, a year earlier. That was mainly because of lower power prices in Alberta and unplanned power plant outages. However, gains from its pipelines and U.S. power plants boosted revenue by 20.1%,…