Sunday, August 12, 2012

TransCanada TCP Canada provides the dividend machine for August 13, 2012

English: C.D. Howe (NFB image) The Hon. C.D. H...English: C.D. Howe (NFB image) The Hon. C.D. Howe at the official ceremony at the border of Canada and United States of the joining of the pipeline from an oil tanker terminal, Portland, Maine with refineries in Montreal, P.Q. (Photo credit: Wikipedia)
TransCanada Corporation, symbol TCP, my 31st dividend machine pick of 2012.

            Few non-USA companies qualify as dividend machines.  My trepidation over selecting foreign companies as dividend machines is due to my mistrust of international accounting.  Other factors like currency exchange make investing in international companies even more complicated.  

Let me be clear about international companies; I do invest in them.  However, the duty of this blog is to find 48 dividend machines in 2012 and to offer covered call and interest income ideas.  

This week's dividend machine is number 31.  As I searched for a company that meets all four criteria, the first dividend machine I came across was a company from Canada.   Canada, our cousin country, has well established accounting rules and that allow me to feel more comfortable naming TransCanada Corporation (TCP) as this week’s dividend machine.

            Everybody has heard of the TransCanada Pipeline also known as the Keystone Pipeline.TCP is the company that would build that pipeline.   In 2000, the TransCanada energy company made some changes and now is a leader in oil and gas equipment and servicing.

            It matters not how you feel about the proposed pipeline, as income investors we care that the company wants to maximize our income and is committed to pay us increasing income over time.

            With that vision in mind, review the data in the following table (based on closing price Friday, August 10, 2012) to determine if TransCanada, TCP, is a dividend machine that you would like to include in the income producing portion of your investment portfolio.

TransCanada Corp. TCP

Price when profiled
Last 4 Qtrs Earnings
Last 4 Qtrs Dividend
Current Dividend Yld
No. of Years increased
Debt/Equity ratio

Very Truly Yours,

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