TC Energy Hikes Dividend 39% to $0.85 as Analysts Rate Stock Moderate Buy
Analysts have issued an average Moderate Buy rating on TC Energy, based on 7 Buy, 2 Strong Buy, and 3 Hold recommendations and a mean 12-month target of $84.00. The company increased its quarterly dividend by 39% to $0.85, boosting the annual payout to $3.40 (6.2% yield).
1. Analyst Consensus and Ratings Breakdown
Twelve brokerages currently cover TC Energy, assigning it an average recommendation of Moderate Buy. Within this group, two analysts rate the stock as Strong Buy, seven as Buy and three as Hold. Over the past year, this coverage has included upgrades from hold to strong-buy at CIBC Capital Markets and target-price increases from Royal Bank of Canada, while CIBC World Markets moved in the opposite direction.
2. Recent Financial Performance and Dividend Increase
In its most recent quarterly report, TC Energy delivered earnings per share of $0.56, in line with consensus estimates but down from $1.03 in the same quarter last year, on revenue of $1.86 billion. The company has raised its quarterly dividend to $0.85 per share, representing an annualized payout of $3.40 and a yield of approximately 6.2%.
3. Institutional Ownership and Trading Activity
Approximately 83.1% of TC Energy’s shares are held by institutional investors and hedge funds. In the latest quarter, several smaller firms established new positions—Trust Co. of Vermont ($28,000), Hilltop National Bank ($32,000), SWAN Capital ($40,000)—while SWAN Capital and Smartleaf Asset Management increased their stakes by 100.0% and 237.4%, respectively.
4. Balance Sheet Metrics and Credit Profile
The company’s debt-to-equity ratio stands at 1.60, reflecting its capital-intensive pipeline and power infrastructure business. With a current ratio of 0.63 and a quick ratio of 0.56, liquidity remains moderate. TC Energy’s net margin of 23.9% and return on equity of 10.6% underscore continued profitability despite the recent year-over-year EPS decline.