TC Energy declares quarterly dividends

Rhea-AI Summary

TC Energy Corporation (TRP) declares quarterly dividends for common and preferred shares, with an emphasis on tax benefits for Canadian residents.

Insights

Financial Analyst

TC Energy Corporation's declaration of a quarterly dividend is a direct indicator of the company's current financial health and its ability to generate positive cash flow. Shareholders often view consistent or increasing dividends as a sign of financial stability and corporate confidence. The announcement of dividends on both common and preferred shares suggests a strategy to appeal to a diverse set of investors, with preferred shares typically attracting those seeking more stable, income-generating investments.

It's important to note the dividend yield, which can be calculated by annualizing the quarterly dividend and dividing by the share price. This yield is a key metric for income-focused investors. A comparison of TC Energy's dividend yield to the industry average and fixed income alternatives would provide a clearer picture of its attractiveness in the current investment landscape.

Market Research Analyst

Dividend declarations can influence investor sentiment and stock market performance. A stable or increased dividend may signal to the market that TC Energy is confident in its long-term prospects, potentially leading to a positive reaction in its stock price. On the other hand, if the declared dividend is lower than previous quarters or below market expectations, it could negatively impact investor sentiment.

Analyzing the historical dividend trends and payout ratios of TC Energy, in relation to its earnings, can provide insight into the sustainability of its dividend payments. Additionally, understanding the company's investment in growth versus the amount returned to shareholders can indicate the balance TC Energy is striking between rewarding shareholders and funding future expansion.

Tax Expert

The designation of dividends as 'eligible' for enhanced tax credit is significant for Canadian residents. This tax advantage can make TC Energy's dividends more attractive compared to those of companies that do not offer eligible dividends. It's crucial for investors to understand the tax implications of such dividends, as they can affect the after-tax return on investment, especially for those in higher tax brackets.

Furthermore, the implication of purchasing shares through the Dividend Reinvestment and Share Purchase Plan (DRP) at 100% of the weighted average purchase price must be examined. While DRPs are often seen as a way to compound investment returns by reinvesting dividends, the lack of a discount on the purchase price, which some DRPs offer, may affect the attractiveness of the plan to investors.

CALGARY, Alberta, Feb. 16, 2024 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) today announced that its Board of Directors (Board) declared a quarterly dividend of $0.96 per common share for the quarter ending Mar. 31, 2024, on the Company’s outstanding common shares. The common share dividend is payable on Apr. 30, 2024, to shareholders of record at the close of business on Mar. 28, 2024.

The Board also declared quarterly dividends on the outstanding Cumulative First Preferred Shares as follows:

• For the period up to but excluding Mar. 28, 2024, payable on Mar. 28, 2024, to shareholders of record at the close of business on Feb. 29, 2024:
  • Series 1 (TRP.PR.A) - $0.2174375 per share
  • Series 2 (TRP.PR.F) - $0.4280309 per share
  • Series 3 (TRP.PR.B) - $0.105875 per share
  • Series 4 (TRP.PR.H) - $0.388683 per share
    
    
• For the period up to but excluding Apr. 30, 2024, payable on Apr. 30, 2024, to shareholders of record at the close of business on Apr. 2, 2024:
  
  • Series 5 (TRP.PR.C) - $0.1218125 per share
  • Series 6 (TRP.PR.I) - $0.4088163 per share
  • Series 7 (TRP.PR.D) - $0.243938 per share
  • Series 9 (TRP.PR.E) - $0.235125 per share
    

These dividends are designated by TC Energy to be eligible dividends for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.  

Common shares purchased with reinvested cash dividends under TC Energy’s Dividend Reinvestment and Share Purchase Plan (DRP) will be acquired on the Toronto Stock Exchange at 100 per cent of the weighted average purchase price. The DRP is available for dividends payable on TC Energy’s common and preferred shares.

About TC Energy
We’re a team of 7,000+ energy problem solvers working to move, generate and store the energy North America relies on. Today, we’re taking action to make that energy more sustainable and more secure – while innovating and modernizing to reduce emissions from our business. Along the way, we invest in communities and partner with our neighbours, customers and governments to build the energy system of the future.

TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com.

FORWARD-LOOKING INFORMATION
This release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Forward-looking statements in this document are intended to provide TC Energy security holders and potential investors with information regarding TC Energy and its subsidiaries, including management's assessment of TC Energy's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TC Energy's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the most recent Quarterly Report to Shareholders and Annual Report filed under TC Energy’s profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.

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Media Inquiries:
Media Relations
media@tcenergy.com
403-920-7859 or 800-608-7859

Investor & Analyst Inquiries:
Gavin Wylie / Hunter Mau
investor_relations@tcenergy.com
403-920-7911 or 800-361-6522

PDF available: http://ml.globenewswire.com/Resource/Download/71b2abe9-7e8b-49e2-90f0-c446b4cb82ed

FAQ

What is the quarterly dividend declared by TC Energy for its common shares?

TC Energy declared a quarterly dividend of $0.96 per common share for the quarter ending Mar. 31, 2024.

When is the common share dividend payable to shareholders of TC Energy?

The common share dividend is payable on Apr. 30, 2024, to shareholders of record at the close of business on Mar. 28, 2024.

What are the quarterly dividends declared for TC Energy's Cumulative First Preferred Shares?

TC Energy declared quarterly dividends for its Cumulative First Preferred Shares, varying for different series including TRP.PR.A, TRP.PR.F, TRP.PR.B, TRP.PR.H, TRP.PR.C, TRP.PR.I, TRP.PR.D, and TRP.PR.E.

Are the dividends designated by TC Energy eligible dividends for tax purposes?

Yes, these dividends are designated by TC Energy to be eligible dividends for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation.

What tax benefit applies to eligible dividends paid to Canadian residents?

An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

Does TC Energy offer a Dividend Reinvestment and Share Purchase Plan (DRP)?

Yes, TC Energy offers a DRP where common shares purchased with reinvested cash dividends will be acquired on the Toronto Stock Exchange at 100 per cent of the weighted average purchase price.