Shares of TC Energy (TSX:TRP)(NYSE:TRP) fell more than 25% last year as the oil and gas sector as a whole struggled during the COVID-19 pandemic while the S&P 500 climbed 16%. In December, investors sold off their losses with the energy stock declining 10% in just the past month even as the index rose by 3%.
At around $52 a share, the stock is trading at just 11 times its earnings. And with its quarterly dividend of $0.81 still intact, it is now yielding 6.2%. That means that on a $10,000 investment in the company, you can expect to earn about $620 on an annual basis – just in the way of dividend income. And there's hope that those payouts could rise.
In 2015, TC Energy was paying $0.52 per share and the company has increased those payments by 56% since then, averaging a compounded annual growth rate of 9.3% during that time.
TC Energy could be an attractive buy right now as 2021 has the potential to be a much better year for the oil and gas industry. With COVID-19 vaccines on the way and hopefully slowing the spread of the coronavirus, there will likely be more travel this year which can help push up demand for oil and improve commodity prices.
Despite the challenges of 2020, TC Energy still reported a solid profit of $4.6 billion over the trailing 12 months with a profit margin north of 30%. The energy infrastructure company is still a solid buy and now could be a great time to lock in a high yield.
