Topic: How To Invest

The Successful Investor Hotline – Friday, June 7, 2024

Article Excerpt

TC ENERGY INC., $54.18, 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. 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 company, which will retain the TC Energy name and trading symbol, will focus on its gas pipelines and electrical power operations. The spinoff will also benefit income-seeking investors. In April 2024, TC…