Topic: How To Invest

Dividend Advisor Hotline – Friday, October 11, 2024

Article Excerpt

TC ENERGY INC., $62.81, Toronto symbol TRP, is a buy. TC 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 10 power plants in Canada and the U.S. On October 1, 2024, the company 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. With the loss of the South Bow assets, the stock is down 4% since the spinoff. However, the spinoff will let TC better focus on its natural gas and power businesses. The renewed concentration will help the company profit from the rising export of liquefied natural gas (LNG) to Asia and other overseas markets. Moreover, U.S. power…