TC PipeLines, LP
Structured as a master limited partnership, TC PipeLines, LP is benefiting from the “drop-down” relationship with its parent. The latest deal has the MLP purchasing additional stakes in two major U.S. gas systems from TransCanada. Adding these gathering systems to TCP’s stable of low-risk infrastructure assets will be immediately accretive to earnings and distributable cash flows for investors.
Already, TCP has been able to establish a strong track record of providing constant and growing cash distributions to unit holders. The MLP has grown its distribution every year for the last 13 years. The additional “drop-downs” should continue the trend.
TCP currently yields an ample 6.3%.