Monday, July 9, 2007

Dividend Growing Stocks - V

TransCanada Corp - TRP

"TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. Our network of more than 59,000 kilometres (36,500 miles) of pipeline taps into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada also owns, or has interests in, approximately 7,700 megawatts of power generation."

-Has paid a dividend for the last 42 years
-Long history of increasing dividends (with the exception of 1999 where they cut it from $1.12 to $0.8)
-The purpose of the dividend cut was "to strengthen its financial flexibility and capture North American energy growth opportunities."
-Current P/E 17X
-Estimated 2007 P/E 18X
-Estimated 2008 P/E 16.7X
-Current yield 3.7%
-TD target price of $44

15 year Dividend History

Year Annualized Dividend (Declared)
2006 $1.28
2005 $1.22
2004 $1.16
2003 $1.08
2002 $1.00
2001 $0.90
2000 $0.80
1999 $1.12
1998 $1.18
1997 $1.18
1996 $1.10
1995 $1.02
1994 $0.94
1993 $0.86
1992 $0.78
1991 $0.73

47 comments:

  1. Interesting. I did not realize they cut their dividend like that.

    Looks like the stock actually tanked too, from $23 or so all the way down to $10...scary.

    ReplyDelete
  2. Yeah, for a dividend growth strategy, that doesn't seem good. I understand full well why they cut the dividend, but it almost took 6 years to get the dividend back up to 1999 levels and if they would have just kept it where it was and kept increasing it, imagine where it might be today?

    But then again they have been able to put all that money into solid investments in infrastructure and growing the company... It wasn't all bad.

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