Updated: November 28, 2017
Three years into retirement, Rick Bujnowicz is focused on what he calls the important things in life –regular exercise, learning to play the piano, road tripping on his motorcycle, and volunteering at his church and in the community.
Thankfully, he says he doesn't have to spend much time worrying about whether his retirement plans are on track, in large part because of his investment in TransCanada.
"Once you're in your sixties, most of us want to be able to sleep at night. My broker says if you have an investment you can't sleep with, you've got the wrong investment," said the 64-year-old Bujnowicz, who used to work as a sales rep in the energy industry. "TransCanada is one I can sleep with."
Following the financial crash 2008, Bujnowicz took a hard look at his investments and decided to sell all of his more-volatile oil and gas stocks – "the stuff that really makes you a lot of instant money if you're lucky" – and bought into more stable and predictable companies that are focused on providing long-term value. He basically re-did all his portfolio with TransCanada shares becoming an integral part of it.
"I don't care what the market is doing any more," he said. "Money ebbs and tides but TransCanada has been very sustainable."
TransCanada's long-term focus on safe and reliable delivery of the energy society needs while protecting its financial strength and flexibility and A-grade credit rating has proven to be resilient through a myriad of business conditions and economic cycles. This explains why some of our largest shareholders include public sector pension plans and institutional investors that value stability and growth.
"Money ebbs and tides but TransCanada has been very sustainable." – Rick Bujnowicz
Our common share dividends have increased for the last 17 consecutive years and in that time our shareholders have been rewarded with a 14 per cent average annual total return (share price plus dividends, assuming all dividends are reinvested). Since 2000, the overall return on investment for TransCanada shares has been over 1,000 per cent (assuming dividends were reinvested).
"When reviewing my clients' portfolios and fund performance, I'd be very happy to see they've chosen to invest in a solid and well-performing company like TransCanada to complement their alternative investments," said Andrea Kerr, private wealth advisor with Raintree Financial Solutions Inc.
"As a private wealth advisor who believes in and recommends using alternative investments to properly diversify a portfolio, I also believe it is important for my clients to hold public companies like TransCanada. With positive annual returns over the last 10 years, TransCanada stock seems like a wise portfolio inclusion."
Last year, the addition of Columbia Pipeline Group along with the completion of several other growth projects, resulted in our asset base growing to $86 billion. Our share price reached all-time highs, comparable earnings per share increased by 12 per cent compared to 2015, while net cash provided by operations exceeded $5 billion for the first time in the company's history.
Our results in 2017 have continued this trend, with strong performance across our three business lines generating solid financial results. In the first nine months of 2017, comparable earnings per share increased 12 per cent and comparable earnings before interest, taxes, depreciation and amortization (EBITDA) went up 15 per cent compared to the same time last year. And we continue to be on track to deliver a 10.6 per cent annualized increase in our common share dividend for 2017 that was approved by our Board of Directors in February.
Looking forward, more than 95 per cent of our EBITDA are generated through long-term contracts and regulated businesses, providing stable and predictable revenue streams. Combine that with a portfolio of $24 billion in commercially-secured near-term growth projects, and we are confident in our ability to continue growing our common share dividend at an average annual rate at the upper end of eight to 10 per cent through 2020, and eight to 10 per cent in 2021.
Further organic growth is expected across all of our business lines and geographies and we also continue to advance more than $20 billion in medium to longer-term projects that provide options for generating significant additional shareholder value.
It's performance like this that allows investors like Bujnowicz to sleep well at night.