TC Energy (TSX:TRP) has been an attractive dividend payer for many Canadians despite consistent issues with its Keystone oil pipeline. However, the company unlocked shareholder value when it spun off its oil pipeline business in October 2024. The share price rally that began in July 2024, when the spin-off was in the works, has now pushed TC Energy’s stock price to new highs, surging 86% to around $96.
While the share price surged drastically, dividends grew at a normal pace of 3% annually. This reduced the annual dividend yield from 7% in 2024 to 3.7% in 2026.
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Here’s how many TC Energy shares you should own to get $1,020 in dividends
Had you invested in TC Energy back in 2024 when the stock was trading near the $50 per share range, 272 shares worth $14,300 could have earned you $1,020 in annual dividends. Today, for the same dividend, you will have to shell out $27,936 to buy 291 shares at $96.
| Year | CNQ Dividend per Share | Number of Shares to Earn $1,020 in Dividends | Average TC Energy Share Price | Investment Amount |
| 2026 | $3.51 | 291 | $96 | $27,936 |
| 2025 | $3.40 | 300 | $70 | $21,000 |
| 2024 | $3.70 | 275 | $52 | $14,300 |
Buying the dip brings value and helps lock in higher yields for a long time. There is no point buying an energy infrastructure stock at its all-time high. You will overpay for lower returns.
Other ways to earn $1,020 in dividends
If $1,020 in annual dividends is your financial goal, better stocks are trading on the TSX. For instance, Cogeco Communications (TSX:CCA) offers a 6% dividend yield. The entire telecom sector saw a downturn after a regulatory change triggered a price war. The regulatory change was in favor of Mobile Virtual Network Operators (MVNOs) like Cogeco that have an asset-light model. MVNO’s lease network infrastructure from Mobile Network Operators and earn revenue by providing good pricing, service quality, and network access.
This regulatory change increased price competition, which reduced revenue due to lower average revenue per user. However, Cogeco maintained a healthy 30% dividend payout ratio and grew its dividend per share by 7% in 2026.
Cogeco’s 6% dividend yield, 7% dividend growth, and a 30% payout ratio present a more lucrative dividend investment than TC Energy’s 3.7% yield, 3% dividend growth, and a 100% payout ratio.
If you want to earn an annual dividend of $1,020, you need to buy 258 shares of Cogeco, which will cost you $16,824.
| Year | Cogeco Dividend per Share | Number of Shares to Earn $1,020 in Dividends | Cogeco Share Price | Investment Amount |
| 2026 | $3.98 | 258 | $65.21 | $16,824.18 |
Cogeco has grown dividends in 15 out of the last 16 years. The energy sector was a value dividend opportunity in 2021 and 2023 when energy stocks were trading at a discount and offering a dividend yield above 6%. Telecom stocks offer a similar value offering now, before artificial intelligence (AI) drives demand for communication and broadband.
Investor takeaway
Dividend stocks can stabilize your portfolio returns and offer higher passive income when purchased at a lower price. TC Energy is a good stock for its consistent dividends and dividend growth. However, now is not the time to buy the stock. When planning for a fixed cash flow, explore stocks with a higher yield, balanced risk, and inflation-adjusted dividend growth.
