TC Energy Results And Dividend Hike Test Sustainability Of Payout Story

Simply Wall St

Sat, February 14, 2026 at 12:17 PM GMT+9 5 min read

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TC Energy reported strong fourth quarter and full year results, supported by its North American natural gas and power operations.

The company raised its dividend for the 26th consecutive year and brought major projects online ahead of schedule and under budget.

Management highlighted continued demand for energy infrastructure as a key driver for the business.

For investors watching TSX:TRP, this update adds fresh context to a share price of CA$86.52 and a long track record of dividend increases. The stock is up 5.9% over the past week and 14.0% over the past month, with a 39.3% return over the past year. Over 3 years and 5 years, total returns of 100.6% and 126.9% indicate long term value creation for shareholders.

With major projects now in service and infrastructure demand described as supportive, many investors will be focused on how TC Energy balances future capital spending with its long running dividend program. The latest results and project execution provide more current data points to assess whether the current CA$86.52 share price reflects the company’s pipeline and power footprint.

Stay updated on the most important news stories for TC Energy by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on TC Energy.

TSX:TRP Earnings & Revenue Growth as at Feb 2026

Is TC Energy’s dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis.

For income focused investors, the headline from this update is that TC Energy’s board has approved a 3.2% increase in the quarterly dividend to $0.8775 per share, or $3.51 on an annualized basis, marking 26 consecutive years of growth. That decision comes alongside 2025 net income of $3,519 million and basic EPS of $3.27, with comparable EBITDA up 9% and quarterly EBITDA up 13% year over year according to management commentary. The company also reports placing $8.3b of projects into service, more than 15% under budget, which can support future cash generation. At the same time, Simply Wall St’s risk checks point out that the dividend is not well covered by earnings or free cash flow and that interest payments are not well covered by earnings, so the higher payout does not remove questions about balance sheet pressure. The combination of a long dividend track record, continued growth in the payout, and identified coverage and leverage risks means this update gives dividend oriented investors more concrete numbers to assess whether the current yield and payout profile fit their own risk tolerance and income goals.

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How This Fits Into The TC Energy Narrative

The strong quarter, higher comparable EBITDA and the placement of $8.3b of projects into service support the narrative that TC Energy’s large pipeline and power asset base can benefit from North American gas demand, including LNG exports and data centers, which is one of the potential growth catalysts in the existing narrative.

The reported decline in full year net income and EPS compared to the prior year, along with flagged concerns about leverage and dividend coverage, challenge the more optimistic part of the narrative that assumes stable margins and low financial risk as capital needs remain high.

The successful delivery of projects more than 15% under budget and the use of AI driven efficiencies in planning are operational details that are not fully reflected in the existing narrative, and may influence how investors think about execution risk and future capital efficiency.

Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for TC Energy to help decide what it’s worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Simply Wall St’s checks indicate that the current dividend is not well covered by earnings or free cash flow, which can limit flexibility if business conditions soften or funding costs rise.

⚠️ Interest payments are flagged as not well covered by earnings, so higher debt costs could weigh on future results and keep leverage under scrutiny, especially relative to other large pipeline peers such as Enbridge and Kinder Morgan.

🎁 The 3.2% dividend increase and 26 year track record of dividend growth signal management’s confidence in the cash generating ability of TC Energy’s regulated and contract backed assets.

🎁 Comparable EBITDA growth of 9% for the year and the placement of $8.3b of projects into service on schedule and under budget provide additional cash flow support for the dividend and ongoing capital programs.

What To Watch Going Forward

From here, you may want to watch how TC Energy’s payout ratio evolves relative to earnings and free cash flow, and whether management makes progress on the balance sheet so interest coverage improves. Guidance for 2026 comparable EBITDA and EPS, as well as any updates on capital spending and project approvals, will help show how sustainable the current dividend growth rate is. It can also be useful to compare TC Energy’s dividend policy and leverage trends with other large North American pipeline operators to see how its risk and income profile stacks up.

To ensure you’re always in the loop on how the latest news impacts the investment narrative for TC Energy, head to the community page for TC Energy to never miss an update on the top community narratives.

_ 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._

Companies discussed in this article include TRP.TO.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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