Topic: How To Invest

TRANSCANADA CORP. $42.69 – Toronto symbol TRP

TRANSCANADA CORP. $42.69 (Toronto symbol TRP; Shares outstanding: 708.9 million; Market cap: $30.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.transcanada.com) recently had its proposed Keystone XL pipeline rejected by the U.S. The line would have pumped oil sands crude to refineries on the U.S. Gulf Coast.

So far, TransCanada has spent $2.4 billion U.S. on this $8.0-billion U.S. project. However, it can use some of the line’s equipment on other projects, which would minimize a writedown.

Meanwhile, TransCanada has $35 billion of large-scale projects underway, as well as $13 billion in small- to medium sized developments set to come into service in the next three years.

The company has also announced that it plans to increase its dividend by an average annual rate of 8% to 10% through 2020.

TransCanada is still a buy.

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