Wednesday, March 31, 2010

TransCanada Corporation Added

No Dividend Portfolio is complete without a utility distribution company. such as TransCanada.
I've considered Fortis, and TransAlta, before selecting TransCanada because it looks like the best deal at the moment. though Fortis and TransAlta could be added later for diversification when the price is right.

CIBC Analyst:
Our price target remains at $42, and is based upon a 17.5x 2011E target multiple (unchanged). At 14.5x 2011E EPS, we view current levels as an attractive entry point ahead of what is expected to be very strong growth in 2011+. We maintain our Sector Outperformer rating.
12-18 mo. Price Target $42.00
52-week Range $28.86-$36.49
Market Capitalization $23,892.1M
Dividend/Div Yield $1.60 / 4.6%

Earnings Per Share
2009 $2.03A
2010 $2.10E
2011 $2.41E

2009  17.2x
2010 16.6x
2011 14.5x

Dividend Per Share
2009 $1.52A
2010 $1.60E
2011 $1.70E

TransCanada pays an eligible divided.

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