Can TC Energy’s (TSX:TRP) Dividend Consistency Outweigh Recent Earnings Declines?

• TC Energy Corporation recently reported its third-quarter and nine-month 2025 financial results, showing declines in sales and net income compared to the previous year, and announced quarterly dividends for both common and preferred shares.
• An important detail is that despite lower earnings and sales, TC Energy maintained its quarterly dividend payout to shareholders, highlighting its ongoing commitment to shareholder returns.
• We'll examine how TC Energy's continued dividend payments amid weaker earnings impact the company's investment narrative and future outlook.

Find companies with promising cash flow potential yet trading below their fair value.

TC Energy Investment Narrative Recap

To be a shareholder in TC Energy today, you need to believe in the company's ability to weather near-term earnings pressure while leveraging its core regulated assets and pipeline network for long-term stability and contract renewals. Despite the recent sales and net income declines reported for the third quarter, the news does not materially shift the most important short-term catalyst, continued access to capital and project execution remains key, nor does it significantly increase the largest risk, which centers on persistent pressure from weaker earnings coverage for dividends.

The most relevant announcement is the Board's confirmation of its quarterly dividend of $0.85 per common share, scheduled for January 2026. This move stands out given the lower earnings figures, emphasizing TC Energy's current prioritization of dividend consistency, and raises questions about the sustainability of payouts if income softness persists.

But while the dividend holds steady, it’s essential for investors to be aware that earnings coverage for these payments is becoming less robust and that...

Read the full narrative on TC Energy (it's free!)

TC Energy's outlook anticipates CA$17.2 billion in revenue and CA$4.0 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 6.3% and a CA$0.2 billion decrease in earnings from the current CA$4.2 billion.

Uncover how TC Energy's forecasts yield a CA$76.68 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members provided five fair value estimates for TC Energy, ranging significantly between CA$45.32 and CA$76.68. With such ranged opinion, remember that persistently lower earnings could increase risk to the company’s future cash flows, explore several viewpoints to fully understand what this means for you.

Explore 5 other fair value estimates on TC Energy - why the stock might be worth as much as CA$76.68!

Build Your Own TC Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TC Energy research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free TC Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TC Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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