Is TransCanada Corporation a Buy?

TransCanada (NYSE: TRP) has been a steady performer for investors over the years. Since 2000, for example, it has delivered 14% average annual returns for investors, thanks in part to delivering 7% compound annual dividend growth. Those returns could be even better over the next few years given that the company has enough growth projects coming down the pipeline to deliver accelerated earnings and dividend growth. That forecast, when combined with its relatively inexpensive valuation and compelling 3.9% yielding dividend, makes it an ideal stock for income-focused investors to buy.

In late 2015, TransCanada unveiled a new five-year growth plan, backed at the time by 13 billion Canadian dollars' ($10.7 billion) worth of expansion projects that were well underway. The company believed that the fee-based cash flows from those projects when combined with its already stable portfolio and sound financial profile, would support 8% to 10% compound annual dividend growth through 2020.

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Source: Fool.com