Darren Sissons - BNN - TOP PICK TC Energy (TRP TSX)
An attractively priced total return national champion. Management executed a modest deleveraging via the sale of the non-core Columbia Gas/Columbia Gulf asset for $5.2 billion. It guided an annual dividend growth of three to five per cent moving forward from the current 7.7 per cent dividend yield base. Improved leverage metrics, annual dividend growth and completion of the Coast Gas Link in the third quarter of 2023 are catalysts supporting an improved share price performance. Should interest rate consensus prove correct, the expected decline in interest rates within two years will drive outsized share price performance for elevated dividend-yielding companies like TC Energy.