Teal Linde - BNN - TOP PICK TC ENERGY (TRP TSX)
TC Energy's outlook over the next 12 months is looking attractive on a risk-adjusted basis. There are a few reasons for this. First, the company recently increased financial guidance for the current year, from EBITDA profit growth range of five to seven per cent up to eight per cent. Second, the company is confident in its line of sight to reduce its debt load to a more a respectable 4.75x debt/EBITDA. Third, with the company's dividend currently yielding 7.2 per cent, management reiterated their annual dividend growth of three to five per cent, which means a total return of 10 per cent to 12 per cent. Finally, Canada's economy appears to be heading or is already in a recession, which could prompt the central banks to start reducing interest rates, which would likely place upward pressure on dividend-paying stocks like TC Energy.
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