Topic: How To Invest

The Successful Investor Hotline – Friday, March 13, 2020

Article Excerpt

TC ENERGY INC., $59.40, Toronto symbol TRP, is our #1 Income Buy for 2020. TC generates steady cash flow for investors mainly through the 92,600-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 10 power plants. The company is now buying the Pioneer Pipeline from Tidewater Midstream and Infrastructure Inc. and TransAlta Corp. (Toronto symbol TA). The pipeline pumps natural gas from Drayton Valley, Alberta, to west of Edmonton. TC will integrate it with its existing network in Alberta. That will make it easier for power utilities in the province to convert their coal-fired plants to gas. TC will pay $225 million for Pioneer when it completes the purchase in the second quarter of 2020. That’s equal to 23% of the $970 million, or $1.03 a share, it earned in the fourth quarter of 2019. Using acquisitions to expand adds to investors’ risk. However, Pioneer’s long-term shipping contracts…