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TransCanada Reported Strong Q4 Results, Raised Dividends 8.7%


Nov. 20 2020, Updated 12:01 p.m. ET

TransCanada’s earnings rose

TransCanada (TRP) reported its fourth-quarter results on February 14. The company reported 32% growth in its comparable earnings for the fourth quarter compared to the fourth quarter of 2017. For 2018, the comparable earnings rose 30% compared to 2017. TransCanada attributed the earnings growth to a strong performance from its legacy assets and contributions from growth projects. TransCanada shares were trading ~1.0% higher in early morning trade on February 14.

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Higher dividend

TransCanada increased its dividend for the first quarter of 2019 by 8.7%. The company has increased its dividend for 19 consecutive years. TransCanada is trading at a yield of ~5.0%. The company expects its dividends to grow 8%–10% annually through 2021. The above graph shows TransCanada’s dividends over three years.

Growth projects

In October, TransCanada announced its decision to proceed with its 6.2 billion Canadian dollar Coastal GasLink pipeline project. The company also announced a 1.5 billion Canadian dollars NGTL Expansion project.

“With our existing asset base expected to benefit from supportive market fundamentals and $36 billion of secured growth projects currently underway, approximately $9 billion of which is commissioning or nearing completion, earnings and cash flow are forecast to continue to rise,” said Russ Girling, TransCanada’s president and CEO.

Enbridge (ENB) is scheduled to report its fourth-quarter results on February 15. To learn how Williams Companies (WMB) fared in the fourth quarter, read Highlights from Williams Companies’ Q4 Earnings.

For the latest coverage on midstream stocks, visit Market Realist’s Energy MLPs page.


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