TC Energy (TRP.TO)

Less expensive than either ENB or PPL, with higher dividend income.

Trades around 12.5x PE, yield's just over 7%, insider buying across the board to the tune of close to $8M last year. Nat gas demand has increased over the last 6 years at about a 4% clip, expected to continue. Dividend should be able to increase 3-5% per year.

Company continues to improve. Liquids spin out good for business. Would be a good place to buy. Cheap stock price valuation. Would recommend buying at current price. Assets very hard to replicate. 

Cost overruns of Coastal GasLink largely behind them. Interest sensitive. If rates start going down, should be a tailwind. Her preference is ENB.

Chart's improved, 200-day MA starting to move a bit higher. Price moved above 200-day late last year. Those are good signs technically. Great dividend, about 7.3%, fairly safe and in fact sees 4% growth. Spinning off liquid pipelines, should unlock shareholder value. Lots of exposure to nat gas, and those prices seem to be bottoming. Good for yield and steady growth.

He owns ENB instead.

Yes. In spin-offs, the new company feels pressure, but pays off later. You can't replace their assets (pipelines). A great business overall.

Another example of a big name being mushy. Downtrend, trying to stabilize. Getting interesting. Better names elsewhere. In the space, he likes PPL and KEY.

Ongoing lawsuit in the USA a concern, but overall business is strong. Would recommend holding. 

Spinout should happen in the fall. South Bow is the more interesting one, could be takeover target. Last quarter was a beat. Too cheap at 12x 2025 earnings, nice dividend, good job executing. Not a lot of EPS growth right now. Sector's done well this month, might need to rest. Likes it, but you don't have to buy it at $53.

It has had a record delivery of natural gas.. Planned data centres will need a lot of energy. There's lots of consumption of natural gas in the U.S. and lots of production in Canada. Pays a 7% dividend.

Excellent company with strong asset base. Higher energy prices will benefit shareholders & bottom line. Expecting dividend to grow 3-5% annually. Move ~25% of all natural gas in North America. Also have power generation business(nuclear). Trading at ~12.5x earnings which is cheap. Coastal Gas Link + Southeast Gateway are major capital projects next year. Southbow energy will split out next year with oil assets. Good time to buy for long term investors.  

The pipelines are a good place to be and the pricing is not sensitive to the commodity prices. The yield is now 7% and it trades at a more reasonable valuation. It is not high growth and not high risk so there is little downside.

Tremendous network of pipelines, wonderful barrier to entry. Also 7 nuclear, gas, and power plants. Higher costs on Coastal GasLink created a buying opportunity. Spinning off lower-growth oil business to trim debt and focus on faster-growing nat gas unit. High returns, balance sheet stronger than some peers and improving, high yield of close to 8%. Attractive valuation. Likes it.

For more information, see the goodreid.com blog for his Globe and Mail article.

A dividend play, now paying nearly 8%. A retiree can buy now and collect income for years to come. TC is spinning off the liquids part of the business, so TC will remain a pure gas play. Their debt is exposed to high interest rates, but the term of their debt is a decade long. If they continue to sell assets and focus on gas, TC will do well.

Debt-driven business, so interest rates hurt. Dividend yield of 7% is quite safe. Owns great assets, not easily replaced. Future growth will be in the US. Own it here and do well. He owns ENB.