Updates on TransCanada Corp., Telus Corp. and IBM

Article Excerpt

TRANSCANADA CORP. $60.99 (Toronto symbol TRP; Shares outstanding: 800.3 million; Market cap: $52.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.1%; www.transcanada.com) operates a 90,300-kilometre pipeline network that pumps natural gas from Alberta to Eastern Canada and the U.S. In the latest quarter, gas pipelines supplied 52% of its revenue. The company also operates oil pipelines (12% of revenue), and has stakes in 20 power plants across Alberta, Ontario, Quebec and the U.S. Northeast (36%). Starting with the April 2017 payment, the company will increase its quarterly dividend by 10.6%, to $0.625 a share from $0.565. The shares now yield a high 4.1%. TransCanada Corp. is a buy. TELUS $43.21 (Toronto symbol T; Shares outstanding: 591.4 million; Market cap: $25.5 billion; TSINetwork Rating: Above Average; Dividend yield: 4.4%; www.telus.com) is Canada’s second-largest wireless telephone service provider. It also sells landline phone, Internet and TV services to customers in B.C., Alberta and eastern Quebec. As part of BCE’s original deal to buy Manitoba Telecom (see…