TRP - TC Energy: Series 7 Preferred Shares Ready For Takeoff

2024-03-07 08:25:27 ET

Summary

• We expect a significant upside for the TC Energy preferred shares, Series 7, over the next six months.
• The opportunity that comes from the reset of the fixed dividend yield happens only once every five years, and reset at much higher rates is even rarer.
• An increase in the fixed rate could result in the price reaching or even exceeding the issue price, providing for north of 39% upside in the long term.
• A potential decrease in interest rates by the Government of Canada later this year would also represent a tailwind for the preferred shares.

Editor's note: Seeking Alpha is proud to welcome Dmytro Konovalov as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » ...

For further details see: