Canada-based energy infrastructure provider TC Energy Corporation TRP is having a great run on the bourses lately. The stock closed Monday’s session at $47.07 after setting a new 52-week high of $47.39 earlier on that day. As shown in this chart, with the advance, TRP shares are up more than 20% since the start of the year, handily outperforming the sector and the S&P 500. The company has also fared better than other midstream operators like Pembina Pipeline PBA and Kinder Morgan KMI.

YTD Price Comparison

Image Source: Zacks Investment Research

Given this impressive year-to-date performance, can investors still consider buying TC Energy stock, or should you book profits? Let’s delve deeper into the company’s fundamentals.

5 Reasons to Like TRP

Strategically Positioned to Tap Growing Gas Demand: TC Energy's extensive infrastructure network, including 58,000 miles of pipelines and significant natural gas storage, forms a critical backbone of North America's energy sector. The company’s primary focus is on its massive network of natural gas transmission assets that cater to around 25% of continental consumption. This wide array of natural gas midstream properties positions TC Energy for a solid long-term future as demand for the commodity soars, spurred by its cost-effectiveness, the secular shift to the cleaner burning fuel for power generation and abundant supply in North America.

Robust Dividend Growth and Stability: TC Energy stands out as a dividend aristocrat, set to increase its dividend for the 25th consecutive year in 2024. This commitment underlines a dependable income stream for investors, particularly appealing in uncertain market conditions. Management projects dividend growth at 4% annually, with a current yield of 6%. Additionally, with 97% of its cash flow secured under long-term contracts and regulated rates, TRP’s income generation is exceptionally stable, further enhancing its appeal to income-focused investors.

Projects Coming Online: TC Energy is set to benefit significantly from its aggressive capital expenditure strategy, with $1.2 billion worth of new projects already in service year to date. The momentum continues with an additional $7 billion in projects expected to go online by the end of 2024. This robust pipeline is anticipated to boost EBITDA and drive near-term revenue growth, positioning TRP well for increased cash flow stability as new assets begin generating returns.

Indigenous Equity Ownership and LNG Growth: TC Energy's historic Indigenous Equity Ownership agreement for the NGTL and Foothills Systems demonstrates a strong commitment to sustainable and inclusive growth. This deal ensures long-term, low-risk revenue streams and solidifies TRP's community relations, potentially enhancing stakeholder support and company valuation. Moreover, with the increasing demand for natural gas, TC Energy's assets are uniquely positioned across Canada, the United States and Mexico, allowing the company to capture substantial LNG export growth. This strategic positioning could drive significant revenue and earnings growth, with visibility to an additional five Bcf per day of LNG capacity.

Northbound Estimate Revisions: Earnings estimates for TRP for 2024 have moved up 1.7% to $3.06 over the past 60 days, while the same for 2025 has improved 3.6% to $3.15. The positive estimate revision depicts bullish sentiments for the stock.

While TC Energy has strong long-term potential, the current market conditions and specific challenges facing the company cannot be ignored.