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TC PipeLines, LP

TC185Dividend Yield: 6.3%

While its parent TransCanada (TRP) continues to make headlines for its proposed Keystone XL pipeline, TC PipeLines, LP (TCP) continues to churn out steady dividends for unit holders.

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%.

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