TC Energy Corp T.TRP.PR.E

couple comments on spinoff

[SargeX]

We are with RBC DI and got our SOBO shares right away yesterday morning. Today, our book cost showed up as $29.51 (which is consistent with others on this board).

I didn't like the idea of the spinoff from the get-go. I would have preferred leaving TRP as it was. Having said that, I really do like the new TRP with no oil (& Keystone) and lots of gas. I thnk it's better positioned for the long run.

My initial plan was to sell all our SOBO shares as soon as possible. After seeing the action yesterday morning and the big jump is the SOBO share price, I decided to only sell 15% of them at $31.05, I then used that cash plus some extra cash to buy some TRP at $59.83.

Today, I decided that it would have been far better to have sold ~50% of SOBO & bought more TRP at my yesterday prices (but such is life). I have decided to just buy the equivalent amount of TRP at $60.85 that the extra SOBO shares would be worth and put an open sell order in at $31.45 to balance.

I will probably sell the remainder of our SOBO if it gets to $40 but will enjoy the huge divy until then.

I thought some readers would like to see our approach with the hedging of our bets with the different sell dates.

Ciao
  Sarge

[DeanEdmonton]

Sarge - hope all  goes great with you guys. WE are doing spectacular. As to SOBO, I have decided to hold onto all of them for now and see where they go. Somehow I have a feeling that with the high dividend and quality assts, even if they are oil pipelines, this thing is going to run up fairly quickly. Will be interesting to see which strategy pays out better in the long run. There sure is

[SargeX]

Hey Dean Great to hear all is oging so well with you (as usual). I've seen a number of your posts on other boards and all your comments are spot on. Keep up the good work and good investing. All is terrific down here. My wife and I just got back form a 2.5 week camping/hiking/walking/sightseeing trip to the N Cal redwoods and back up the Oregon coast. Amazing weather especially for the coast

[Ariahp]

Sarge: So what is the adjusted dividend on TRP. Without knowing that, I am holding on to my SOBO. Also nowhere have I seen the actual SOBO Dividend amount. Educate this PLEB...... if possible GLTA

[Ariahp]

One more comment The dividend for SOBO is apperently going to be declared on November 7th. How can I make an educated decision to either sell or keep. If the combined Dividend from SOBO and TRP is greater than $3.84....I will keep SOBO until it reaches $39.05 I am not selling blindly until I know the total dividend between the 2 entities. Come on Educate me if I am wrong....LOL GLTA

[NextTrendSearch]

They have said nothing about the TRP dividend going down. TRP has very good free capital resources and even more now with dropping interest rates. They could very easily keep the dividend as it has in the past quarters of 2024. I would not assume they do a ratio allocation. The two are trading above the October 1st close. I will use 1000 shares as an example as it makes it easier. Closed at 65.5

[SargeX]

I don't want to argrue about the new TRP divy BUT I know they absolutely said that the total combined divy of the new TRP + SOBO would match the previous TRP divy. That can only happen by reducing the new TRP divy.  I'm just posting this so other readers don't get misled by your comment.

[dileas48s]

Hey Sarge, I agree with your analysis and also your assertion that TRP did indicate that the net dividend payable to shareholders would be the same going forward, at least for the initial dividend.  My math is just slightly different from yours, but the expectation is the same (same net dividend) and I assume I've made an error somewhere in my calculations which will get corrected when

[NextTrendSearch]

I am not trying to argue either, I must have missed that statement. I know the SOBO dividend was announced, strange they didn't announce the TRP one in the same release. If they said that, cool, but it is not regulated to be that way. Up to the companies Glta

[SargeX]

Hey Arialp I know for sure the SOBO divy is $2.75. I saw that somewhere on their website. My understanding is that the new TRP divy is $3.30 (ie: 0.86 x $3.84) I think the plan is to have a higher yield on SOBO but that TRP will have higher divy increases. My gut feel is that most investors prefer a gas/utility business like TRP rather than a pure oil business like SOBO. Also, TRP has a larger

[Ariahp]

Hey Sarge I calculated the dividend on 21,740 TRP Shares at 3.84 & 4,384 at 2.75. I get a dividend  of $85,537 Under the old 3.84 I would get 83,481.  lets look at selling 4,384 say at $30, I get 131,520 Lets say I buy TRP at 60.25, I get 2,182 shares I add , 2,182 to 21,740 = 23,922 23,922  @ 3.30 = 78,945 I loose  by selling SOBO and Buying TRP Hope my Logic is

[Ariahp]

One correction, I transposed 4,384...should be 4,348. The difference is only 36 shares. It is the concept that is important. I will not be selling SOBO based on my Calculations, until proven wrong! Have a great weekend

[SargeX]

If your goal is current dividend income, then of course SOBO gives you more. You don;t need to do all those weird calcs to see that. All you have to do is look at current yield. As of todays' close, SOBO has an 8.99% yield and TRP has 5.39%. I think there are more important factors like TRP is likely to increase its divy faster and can SOBO even maintain its payout. Also, if you are a total

[TeamCommonSense]

Hey Sarge! Always enjoy your posts! I took the approach that SOBO would probably trade low stsrting 25 Sept .... cuz of TSX60 ETFs needing to dump SOBO which is not big ennuf to make the 60. So far hv bot 4,600 shares of SOBO at $27,99 $28.00 $29.01 and $29.06. Still want another 4,500 or so but not at higher prices.... so am watching and waiting! Cheers CanSiamCyp