TC Energy ( TSX: ENB ) is down 15% from the 12-month high. Investors who missed the big rally in the stock over the past two years are wondering if TRP is now oversold again and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividend income and long-term capital gains. Source: Getty Images TC Energy trades near $85 per share at the time of writing, compared to $100 just a few months ago.
The drop gives income investors a chance to pick up a dividend yield that is now above 4%. The decline in the stock price is largely due to concerns that inflation will rise in the coming year, forcing the central banks in Canada and the United States to raise interest rates. Rising borrowing costs are negative for pipeline companies, like TC Energy, that borrow to help fund their capital projects, which often cost billions of dollars and take years to complete before they start to generate revenue.
A barrel of oil recently topped US$100 again amid ongoing restrictions on shipments in the Middle East, with little indication that the situation will improve in the near term. The longer that oil prices remain high, the more likely it is that inflation will spread across the broader economy. The European Central Bank just raised its interest rate.
Markets are betting that the central banks in the United States and Canada, among others, will follow suit. Upside TC Energy is riding a wave of rising demand for natural gas in both domestic and international markets. In North America, the surge in construction of new gas-fired power generation facilities bodes well for TC Energy.
The company operates more than 90,000 km of natural gas pipelines and 650 billion cubic feet of natural gas storage capacity in Canada, the United States, and Mexico. TC Energy already moves about 30% of the natural gas used in the North American market, and its infrastructure is close to key regions where the new power facilities are being built to provide electricity to new data centres. On the export side, TC Energy’s new Coastal GasLink pipeline is moving natural gas from Canadian producers to the new LNG Canada export facility on the coast of British Columbia.
Plans to double the capacity of Coastal GasLink are in the works. TC Energy would also be a good potential candidate to build a new pipeline that would connect producers to Churchill, Manitoba where shipments of liquified natural gas (LNG) to Europe could occur via Hudson Bay from a new LNG export terminal, if one gets approved and built. In the meantime, TC Energy’s current capital program is running at an annual pace of $5 billion to $6 billion.
This should drive enough growth in cash flow to support ongoing dividend increases. TC Energy raised the dividend in each of the past 26 years. The bottom line Near-term volatility should be expected, but TC Energy already looks attractive at the current price and pays a good dividend that should continue to grow.
If you have some cash to put to work in an income portfolio, this stock deserves to be on your radar. More on Dividend Stocks Dividend Stocks This Isn’t a “Quick Win” Stock: It’s a “Steady Builder” One September 11, 2026 | Joey Frenette CN Rail (TSX:CNR) may be the steadiest compounder on the entire Canadian stock market. Read more » Dividend Stocks Here’s the 6.8% Dividend Stock I Keep Coming Back To September 11, 2026 | Joey Frenette SmartCentres REIT (TSX:SRU.UN) stands out as a near-7% yield dividend play that's worth coming back to for yield.
Read more » Dividend Stocks New to Investing? Start With This Canadian Dividend Stock September 11, 2026 | Sneha Nahata This Canadian stock has a proven record of paying dividends and consistently raising their payouts in the years ahead. Read more » Dividend Stocks VFV Isn’t a Complete Portfolio: Here’s What Canadian Investors May Be Missing September 11, 2026 | Amy Legate-Wolfe VFV feels like a complete portfolio, but it’s really a concentrated bet on U.S. large caps and the U.S. dollar.
Read more » Dividend Stocks Don’t Want to Wait a Year for a GIC Payout? This 11.7% Dividend Stock Pays You Monthly September 11, 2026 | Joey Frenette Hamilton Canadian Financials Yield Maximizer ETF (TSX:HMAX) stands out as the ultimate passive-income booster, but it's far different than GICs. Read more » Dividend Stocks GIC or Dividend Stock?
Here’s Where I’d Put $10,000 for Income and Growth September 11, 2026 | Amy Legate-Wolfe Rogers can beat a one‐year GIC on income and long-term upside, but only if you can handle volatility and debt... Read more » Dividend Stocks Potash Power Play: Why This Overlooked Commodity Could Be Canada’s Trump Card September 10, 2026 | Demetris Afxentiou Canada’s potash dominance gives Nutrien a strategic edge as trade tensions rise, making this overlooked commodity worth watching closely. Read more » Dividend Stocks Trade War 2.0: The TSX Stocks That Could Actually Benefit From U.S.
Tariffs September 10, 2026 | Jitendra Parashar These two TSX stocks could give investors great ways to benefit from Trade War 2.0. Read more » © 2026 The Motley Fool Canada, ULC. All rights reserved.
Source: The Motley Fool Canada
