New projects will lift TC’s dividend

Article Excerpt

The toll rates that pipeline operators like TC Energy charge oil and gas producers are mainly set by government regulators. Those set rates ensure providers get an acceptable rate of return on new projects. The government-involvement also protects TC from volatile swings in energy prices. Thanks to those predictable revenues, TC has now raised its dividend each year for the past 23 years. What’s more, as it places more new projects into service, the company intends to increase your annual dividend rate by 3% to 5% over the next few years. TC ENERGY CORP. $49 is a buy. The company (Toronto symbol TRP; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 1.0 billion; Market cap: $45.0 billion; Dividend yield: 7.6%; Dividend Sustainability Rating: Highest; www.tcenergy.com) operates a 93,300-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 seven power plants. With the April 2023 payment, the company raised your quarterly dividend by…