TRP stock: I have 200 shares purchased on August 31, 2020

 

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is the new name for TransCanada. The board made the change to better reflect the overall operations. TC Energy is best known for its natural gas distribution networks across Canada and the United States. The company also has vast gas storage capacity and power generation facilities.

Growth stems from a combination of acquisitions and organic projects. The existing secured development portfolio includes roughly $30 billion in capital investments. As the new assets go into service, TC Energy expects revenue and cash flow to expand enough to maintain steady dividend growth.

In fact, investors should see a dividend increase of 8-10% in 2021 and 5-7% per year afterwars over the medium term.

The stock trades near $61.50 per share compared to $76 in February. Given the steady revenue outlook TC Energy appears oversold at this level, investors who buy now can get 5.25% yield.

Warren Buffett’s Berkshire Hathaway made a US$10 billion investment in the natural gas infrastructure sector earlier this year. That could lead to further consolidation and higher stock prices for TC Energy and its peers.

The bottom line

Fortis and TC Energy are two of the best dividend stocks in the Canadian market today. Retirees and other investors seeking reliable income stocks should consider these names for their TFSA portfolios.

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