TC Energy still pays a quarterly dividend of $0.81, which yields 5.7% today. That’s a decent payout for the stock and if you were to invest $25,000 into TC Energy, you could expect to earn more than $1,400 per year in dividend income at that rate.
Payout ratio looks at the company’s current profitability and compares it with how much it is paying out in dividends. Over the trailing 12 months, TC Energy has reported a profit of $4.73 per share. On an annual basis, it would currently be paying investors $3.24 in dividends for each share that they own of the company. That’s about 68% of its earnings, which appears to be manageable.
For investors, this could be a great opportunity to lock in a great dividend stock at a cheap price. Currently, TC Energy stock trades at just 12 times its earnings.