Topic: How To Invest

Dividend Advisor Hotline – Friday, November 29, 2024

Article Excerpt

TC ENERGY INC., $68.26, Toronto symbol TRP, is a buy. On October 1, 2024, TC completed the spinoff of its oil pipeline business as separate company South Bow Corp. (see below). Investors received 0.2 of a South Bow share for every TC share they held. They will not be liable for capital gains taxes until they sell their new shares. The remaining company generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. It also owns gas pipelines in Mexico, and owns or invests in seven power plants in Canada and the U.S. Due to the loss of the South Bow assets, TC will cut your quarterly dividend by 14.3%. Starting with the January 2025 payment, investors will receive $0.8225 a share instead of $0.96. The new annual rate of $3.29 still yields a solid 4.8%. TC plans to start-up $7 billion in new projects in 2024 and a further $8.5…