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Today we are saying goodbye to $TRP. #TC Energy has been in our portfolio pretty much ever since we started buying stocks more than 20 years ago. We liked it for its reliable and annually increasing dividend that served as a bond proxy, but with better tax treatment 1/n
Nobody ever expected the business itself to take off. We saw it as huge, lumbering, but mostly going in the right direction, and we didn't see much danger of a dividend cut. The company did that in 1999 and lots of investors never forgave or forgot. 2/n
But the disasters, miscues and mistakes keep happening. Oil spills. Keystone. The now +$14 billion Coastal Gas-Link. The inability to complete projects on time, or at all, and the ever-increasing debt on the balance sheet finally got to us. 3/n
Rising interest rates on that big pile of debt are a risk. The rise of ESG is another one. Inability to deal quickly and efficiently with First Nations issues is yet another. At the end of the day the negatives outweighed the positives and we are saying goodbye. 4/n
There are other dividend growers out there that have a lower risk profile and better prospects, so our income-seeking clients will be shifting towards those companies. Smart investors, it is said, don't fall in love with their companies. Our long marriage of convenience is over.
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