Topic: How To Invest

Dividend Advisor Hotline – Friday, June 14, 2024

Article Excerpt

TC ENERGY INC., $53.25, Toronto symbol TRP, is a buy. TC generates steady cash flow for investors mainly through a 93,600-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 13 power plants. With the April 2024 payment, TC raised your quarterly dividend by 3.2%. Investors now receive $0.96 a share instead of $0.93. The new annual rate of $3.84 yields a high 7.2%. The company’s shareholders have now approved a plan to spin off the oil pipeline business as separate company South Bow Corp. As a result, investors will receive 0.2 of a South Bow share for every TC share they hold. The new shares will trade on the Toronto and New York exchanges under “SOBO” symbol. Investors will not be liable for capital gains taxes until they sell their new shares. TC expects to complete the transaction in the second half of 2024. After the spinoff, the…