Top Holdings in ENFR to Grow Dividend 3%-5% Annually

TC Energy is found in many energy infrastructure portfolios, including the Alerian Energy Infrastructure ETF (ENFR ), in which the energy company is weighted at 7.59%, putting it in the top three holdings.

TC Energy’s board of directors declared a quarterly dividend of $0.90 per common share for the first quarter of 2022, equivalent to $3.60 per common share on an annualized basis, an increase of 3.4% over the amount declared in 2021. This is the 22nd consecutive year the board has raised the dividend, according to the firm.

“Based on the confidence we have in our business plans we expect to continue to grow the common share dividend at an annual rate of three to five per cent,” François Poirier, TC Energy’s president and CEO, said in a statement. “This is consistent with our established conservative approach to capital allocation and is expected to provide the capacity to fund our sizable capital program while enhancing our financial strength and flexibility.”

TC Energy is advancing $24 billion of commercially secured projects, including approximately $6.5 billion worth that are expected to enter service in 2022. These projects will expand and extend the company’s asset footprint across North America and are expected to generate attractive returns for shareholders in the years ahead, according to a statement from the firm.

This capital program, combined with the performance of the firm’s existing assets, is expected to result in average annual growth in comparable EBITDA of 5% through 2026, according to the firm.

TC Energy reaffirmed its commitment to the sustainable development of the business. Modernizing its existing systems and assets along with the decarbonization of its own energy consumption are some of the areas the company is focused on while also seeking opportunities to invest in low-carbon energy infrastructure, according to Poirier.

The company is progressing the electrification of its systems including a Request for Information to meet the electricity needs of the U.S. portion of the Keystone Pipeline System assets as well as the Canyon Creek Pumped Hydro Storage Project and the long-term Bruce Power life extension program. 

Through partnerships both within and outside of the industry, TC Energy has identified emerging technology opportunities such as partnering with Pembina on the Alberta Carbon Grid, signing agreements with Nikola Corporation and Hyzon Motors to explore the co-development of hydrogen hubs, working with Irving Oil to focus on reducing emissions, reaching an agreement with the Department of National Defence for land access to develop the world-class Ontario Pumped Storage Project, and executing a 15-year power purchase agreement for wind energy with EDP Renewables.

In October 2021, the firm set Scope 1 and Scope 2 greenhouse gas reduction targets, including reducing the emissions intensity from its operations 30% by 2030 and positioning to achieve net zero emissions from its operations by 2050, according to a statement from the firm.

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