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Two Dividend Payers In Low-Risk Buy Zones

Two Dividend Payers In Low-Risk Buy Zones

Posted On February 3, 2023 10:17 am
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It’s been a solid month for the market, with the S&P 500 (SPY) up 6% in January and another 1% to start February. However, the real winners have been growth stocks, with the Russell 1000 Growth Index Fund (IWF) up 10% year-to-date.

This broad-based rally has made it more difficult to find names trading at deep discounts to fair value, but there are still a few names that continue to look attractive, especially if one is looking to battle-harden and diversify their portfolio with high yields.

Given the violent pullback in natural gas prices and some disappointing company-specific news this week, TC Energy (TRP) and National Fuel Gas Company (NFG) have found themselves sitting near 52-week lows, placing them in a relatively low-risk buy zone to start new positions. Let’s take a closer look below:

TC Energy (TRP)

TC Energy is one of the largest North American energy companies. It is best known as the owner of the Keystone XL Pipeline (~2,900 miles) that transports Canadian/US crude oil supplies across North America and the ANR Pipeline, one of the largest interstate natural gas pipeline systems (~9,200 miles) in the US.

The company was founded in 1951 and continues to have one of the best dividend track records among its peers, consistently paying and growing its dividend over the past 22 years, from $0.80 in FY2022 to $3.60 in FY2022.

Unfortunately, while it is a steady dividend and…

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