November 19, 2014 / 4:23 PM / 4 years ago

TransCanada plans to double dividend growth rate through 2017

Nov 19 (Reuters) - TransCanada Corp said on Wednesday that it planned to double its dividend growth rate through 2017 as Canada’s second largest pipeline operator brings about C$13 billion ($11.47 billion) worth of small and medium-size projects on line over the next five years.

TransCanada will increase its dividend by 8 percent to 10 percent a year over the next three years, up from a current 4 per cent a year, with that growth rate increasing after 2018 as larger-scale projects come on line, the company said in a presentation.

The Calgary-based pipeline operator also said it expected to more than double earnings before interest, taxes, depreciation, and amortization by 2020.

That growth is dependant on the realization of five key but risky oil and natural gas pipelines, including the Keystone XL project. A bill to force approval of the Keystone XL pipeline failed in the U.S. Senate on Tuesday.

Shares of TransCanada were up 1.8 percent at C$57.03 in morning trading.

1 U.S. dollar = 1.1337 Canadian dollar Reporting by Julie Gordon in Vancouver; Editing by Lisa Von Ahn

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