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TransCanada expects to raise dividend at eight to 10 per cent annual rate

Last Updated Nov 13, 2018 at 8:20 am EST

TransCanada Corp. president and CEO Russ Girling addresses the company's annual meeting in Calgary, Friday, April 27, 2018.THE CANADIAN PRESS/Jeff McIntosh

CALGARY – TransCanada Corp. says it expects to raise its dividend at an average annual rate of eight to 10 per cent through 2021.

Ahead of its investor day in Toronto today, the company says its dividend outlook is supported by expected growth in earnings and cash flow.

The pipeline operator has increased its dividend on common shares in each of the last 18 years.

TransCanada says it expects comparable earnings before interest, taxes, depreciation and amortization to grow to about $10 billion in 2021 — a 35 per cent increase from the $7.4 billion in 2017.

Last week, a U.S. judge blocked a permit for TransCanada’s Keystone XL project and ordered officials to conduct a new environmental review.

The company has said it remains committed to building the pipeline.

Companies in this story: (TSX:TRP)