TRP grows for its investors

Article Excerpt

TC ENERGY INC., $67.49, is a buy. The company (Toronto symbol TRP; Shares o/s: 939.8 million; Market cap: $63.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.transcanada.com) has announced a new deal to build the Keystone XL pipeline, which would pump crude from Alberta to Nebraska. Under the new agreement, Alberta’s provincial government will invest $1.1 billion U.S. for an equity stake in the project. The province will also provide $4.2 billion U.S. in loans. After the new pipeline begins operations, TC will re-acquire the province’s stake. Note: TC still has some U.S. lawsuits to overcome in order to win full approval for Keystone XL. Following TC’s completion of Keystone XL, regulated operations and long-term contracts will supply 98% of its gross earnings. That helps cut the risk associated with depressed oil and gas prices and helps support the current dividend, which yields an impressive 4.8%. 4.8%….