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TSE:TRP

TC Energy (TRP.TO)

85.91
-1.25 (1.43%)
as of Aug 27, 2026, 8:00:00 pm Market Open.
1335 watching
0
Investor Insights
star iconAug 27, 2026, 12:00 am

This summary was created by AI, based on 24 opinions in the last 12 months.

TC Energy (TRP) has garnered mixed reviews from various experts, highlighting both its stable dividend yield and the concerns over its valuation and debt levels. Many analysts suggest a wait-and-see approach, indicating that the stock may be overvalued given its high P/E ratio and limited growth prospects. Notably, with a current yield of around 4% and a solid dividend history, it appeals to conservative investors seeking income. However, experts advise caution due to potential risks in the pipeline sector and general market volatility. The consensus leans towards holding the stock in anticipation of a pullback, while some emphasize its importance as a stable income-generating asset in a diversified portfolio.

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Consensus
Hold
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Valuation
Overvalued
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Similar
ENB,ENU
BUY
ENB vs. Transcanada Apart from one hiccup (it cut its dividend once in the 90s), Transcanada has performed very well. It's a low-risk business with 95% of its revenues regulated or on long-term contracts. They plan to spend $28 billion on new growth projects and fund it with existing cash flow. They can also grow their dividend 8-10% annually for the next three years. As growth projects come to play, maybe their earning will ramp up again.
TOP PICK
One of largest pipeline companies in North America. Both US and Canadian assets. Even without Keystone, it will do well, and the dividend should go up. Good place to be in a tumultuous market. Yield is 5.1%. (Analysts’ price target is $62.93)
DON'T BUY
TRP vs. IPL. He'd go with IPL. The yield is higher. TRP probably has the prospect of a couple of dividend hikes in the next year or two. Whereas hikes at IPL will probably be on hold because of capital expenditures. Quality of IPL assets is unassailable, and the new plant will be meaningfully accretive to their operating earnings when it comes online in 2021. Rebranding is to appeal to its global shareholder base.
BUY
TRP-T vs. KEY-T. One of the most important data points is beta. He would choose TRP, because it's less correlated to the market. Has more protection on downside risk. Plus, it has higher overall performance. A couple of weeks ago, it was bottoming and relative strength was holding in really well. (Analysts’ price target is $63.55)
HOLD
Went sideways, broke down, struggling to keep in some sort of a zone. One of the better, safer charts. He'd hold it if you have it.
TOP PICK

Long owned this. 5% dividend that consistently grows. They're big in the U.S. that's growing. They have the L&G coastal gas link and Keystone which both have partners. (Analysts’ price target is $63.51)

COMMENT
It's a yield play. It's difficult to see a scenario for meaningful growth without the approval of future pipelines. Prefers the utilities because unlike the pipelines he does see some share price appreciation potential as well. Great yield at about 5.1% but growth is a challenge.
TOP PICK
Funding remains a problem: will they have to dilute shares? Also, it's a yield proxy, so what happens as interest rates rise? Pays a nice, safe dividend. Cheap at 13.3x times with a good balance sheet. They'll grow their earnings. It's shelter from the current storm. (Analysts’ price target is $63.91)
BUY
This is a mature yield at 5.4%. He is comfortable owning it at this point. Cash flow has improved and is quite stable. This is an opportunity to buy it quite cheap.
COMMENT
Look at Pembina first, which has growth and a good balance sheet, if you're buying a new position in pipelines (he's not in this space).
TOP PICK

They're adding $10 billion in new projects in 2019 plus $26 billion in 2020, mostly natural gas, but also nuclear assets. If Keystone ever gets approved, TRP will take off. Pays a 5.5% dividend. You get paid while you wait. Big beat in Q3. 8-10% dividend growth. (Analysts’ price target is $64.33)

PAST TOP PICK

(Past Top Pick Oct. 20. 2017, Down 16%) There is growth coming. He'll stick with it. The lack of pipelines has pulled them back and down like all else in October. Historic valuation is good. Dividend yield is 5.6%. If it rebounds to the high-$50s, plus that dividend, you will do fine.

BUY

He doesn't see growth into 2020, but the coastal link for the LNG Kitamat should propel free cash flow. Trading at a cheap 15x earnings. Stable payout ratio. He likes it. You can add to it at these levels.

BUY

He likes this but prefers Enbridge or Pembina. It is almost like a utility. You are getting a decent dividend and should see some capital appreciation. Big question is what does the future hold. Difficult to get approvals on projects. He expects oil differentials to more normalize. This is a decent name.

COMMENT

Pipeline stocks can be good investments. Oil is going to keep on flowing. There will be pipeline expansion at some point. It is not of interest to him, however. Make sure you look carefully at the financials and political ramifications affecting the stock. It can be difficult to analyze it and come to clear conclusions.

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