TC Energy dividend: payout and coverage
TC Energy pays C$3.40 per share after the spin-off, down from C$3.70, and 2025 free cash flow of C$2,245 million was below cash common dividends of about C$3.5 billion. The dividend therefore depends on more than current free cash flow.
How much does TC Energy pay in dividends per share over the years shown?
On October 1, 2024, each investor received one new TC share for each old TC share, plus 0.2 South Bow shares. TC’s dividend therefore fell from C$3.70 to C$3.40 without the shareholder simply losing the separated business; South Bow became a second company with its own assets and dividend.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 15,239 | 13,771 | 13,267 | 12,309 | |
| Revenue growth (calculated) | 10.7% | 3.8% | 7.8% | ||
| Net income | 3,731 | 4,303 | 2,310 | 115 | |
| EPS, diluted | 3.47 | 4.05 | 2.15 | 0.01 | |
| Dividend per share | 3.40 | 3.70 | 3.72 | 3.60 | 3.48 |
What this means. Operating income is not just profit from normal business operations here because it also includes investment income, impairment charges, and gains from selling assets.
Is TC Energy’s dividend covered by its cash?
The funding gap remains visible. 2025 free cash flow was C$2,245 million, below cash common dividends of about C$3.5 billion, before separately recorded equity-investment contributions. Expansion spending may create future cash, but the whole program also includes maintenance, refurbishment and dividends.
In 2025, TC recorded C$1,274 million of equity-investment income. It received C$1,616 million of operating distributions, but also contributed C$1,051 million to equity investments. The three figures tell different stories: accounting profit, cash received and cash reinvested.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,245 | 795 | -1,858 | -955 | |
| − Dividends paid | 3,507 | 3,953 | 2,787 | 3,192 | 3,317 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Paid out more than the free cash flow | 2,191 | 3,913 | 4,769 | 4,191 | |
| − Acquisitions | 0 | 0 | 307 | 0 | |
| + Debt issued | 8,945 | 15,884 | 4,282 |
What this means. The company paid shareholders more than the cash it generated in 2025, so it had to use savings or borrow money to cover the difference.
What could change TC Energy’s dividend?
The base and bear cases hold dividends at C$3.40 per share. The payout was reduced from C$3.70 after the spin-off, while 2025 free cash flow remained below common dividends. The bull case allows only 2% annual growth, reaching C$3.47 first and C$3.61 last, because contracted earnings improve coverage but do not remove investment needs.
The view would also weaken if refinancing costs rise, cash shortfalls persist or dividends consume more funding. The agreed Guadalajara-Manzanillo sale is expected to close in the first half of 2027; delayed proceeds would increase pressure.
What is TC Energy’s dividend yield today against its share price?
| Today (Oct 13, 2026) | |
|---|---|
| Share price | 87.35 |
| Market value (calculated) | 91,018.70 |
| P/E, last 12 months (calculated) | 24.9x |
| Free cash flow yield (calculated) | 2.5% |
| Dividend yield (calculated) | 4.0% |
What this means. Enterprise value is higher than market value because it includes the company's debt after subtracting its cash.