From a dividend or income perspective, I typically focus on a handful of names, but have tried to expand my purview to include other companies with good dividend yields and dividend growth rates, to gain a broader view of the markets and increase my dividend stock watch list.
Today, I’m going to discuss TC Energy (TSX:TRP), formerly TransCanada Energy.
Many investors who have followed Canadian energy stocks over the past decade will be familiar with the TransCanada name. TC Energy is the spinoff of this Canadian infrastructure play, providing investors with great exposure to energy infrastructure assets of high quality and increasing rarity, such as the Keystone XL pipeline.
Of course, headwinds related to the Keystone pipeline pertaining to leaks remain an overhang for this stock, with regulatory scrutiny driving some investors away from TC (the “G” in ESG has not received high marks from many). In that respect, many investors may not want to invest in a company like TC for these ESG issues, etc.
That said, from a fundamentals and dividend perspective, TC is a very good long-term option for investors seeking value and income growth over time.
TC recently announced another increase to its dividend of 8%, and has a solid balance sheet and revenue contracts to secure future dividend increases over time, making this an attractive option for income-oriented investors.
The company has also announced two new expansion projects valued at $1.3 billion in the natural gas pipeline space, projects which have already been largely contracted out. These projects will underpin the company’s dividend future.
Invest wisely, my friends.
