TC Energy Dividend Stock Drops But Long-Term Growth Remains Strong

TC Energy (TSX: TRP) is an undervalued dividend stock yielding 4.3% and growing, according to Joey Frenette at The Motley Fool Canada.

The company's shares have been on a downtrend alongside the rest of the midstream energy plays due to the capital-intensive nature of its business and potential rate hikes from the Bank of Canada (BoC) and Federal Reserve in the U.S.

However, Frenette believes that higher rates are not a significant concern for TC Energy, and the company's long-term narrative is driven by increasing demand for natural gas due to AI-driven infrastructure buildout.

Frenette notes that while shares have dropped 15.6% recently, this is seen as a necessary correction after the stock went parabolic in the spring. He suggests buying dips on TC Energy stock.