If you bought TransCanada shares (TSE: TRP) three years ago, you would have realized 25%

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<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A simple way to benefit from the stock market is to buy an index fund, but many of us dare to dream of higher returns and build ourselves a portfolio. TransCanada Corporation (TSE: TRP) Shareholders saw the share price rise by 25% over three years, well above the market return (16%, excluding dividends). However, the most recent returns have not been as impressive as that: the stock was only 11% last year, including dividends. "Data-reactid =" 27 "> A simple way to profit from the stock market is to buy an index fund, but many of us dare to dream of higher returns and build ourselves a portfolio. TransCanada Corporation Shareholders in (TSE: TRP) saw the share price rise by 25% over three years, well above the market return (16%, excluding dividends). However, the most recent returns have not been as impressive, with the stock only returning 11% last year, including dividends.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Discover our latest analyzes for TransCanada "data-reactid =" 28 "> Discover our latest analysis for TransCanada

To take back Benjamin Graham: In the short term, the market is a voting machine, but in the long run it is a balance. An imperfect, but reasonable, way to evaluate the evolution of opinion on a company is to compare earnings per share (EPS) with share price.

During the three years of share price growth, TransCanada went from loss to profitability. This would generally be considered positive, so we expected a rise in the stock price.

The earnings per share of the company (over time) is shown in the image below (click to view the exact figures).

TSX: Past and Future Results of TRP, March 14, 2019

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It is probably interesting to note that we saw an insider Significantly, we consider that income and profit trends are much more significant measures of activity.When buying or selling a stock, we always recommend a careful historical growth trends, available here.. "data-reactid =" 44 "> It's probably worth noting that we've seen significant insider purchases in the last quarter, which we see as positive, but we believe that revenue trends and profits are much more significant measures of Before buying or selling a stock, we recommend always looking closely at historical growth trends, available here.

What about dividends?

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In addition to measuring the price performance of stocks, The TSR is a performance calculation that takes into account the value of the cash dividends (assuming any dividends received have been reinvested) and the computed value of the dividends. potential future capital increases A more complete picture of the return generated by a share In the case of TransCanada, the TSR was 43% for the last three years, which is greater than the price performance of the share price. We have previously mentioned that the dividends paid by the company have increased the total "data-reactid =" 46 "> In addition to measuring share price performance, investors should also consider Total Shareholder Return (TSR) .The TSR is a calculation of the return taking into account the the value of the cash dividends (assuming that the dividends received have been reinvested) and the computed value of all the updated capital increases.According to the TSR, a more complete picture of the return generated by a share is obtained. , the TSR is 43% for the last 3 months of the share price we previously mentioned.The dividends paid by the company have allowed the company to total shareholder return.

A different perspective

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It's nice to see that TransCanada's shareholders have received total return for shareholders of 11% in the last year, including this dividend, which is greater than the five-year annual TSR of 8.1%, which suggests that the sentiment towards the company has has been positive lately, in some cases this may suggest a real business momentum, which means that the time may be better to go further.If you wish to further research on this stock, data on Insider shopping is an obvious starting point. Click here to see who bought shares – and the price paid. "data-reactid =" 48 "> It is nice to see that TransCanada shareholders have received a total shareholder return of 11% over the past year, including the dividend, which is higher than the annual TSR on therefore, it seems that the sentiment around the company has been positive lately, and at best it could suggest a real business momentum, which may suggest that the moment is may be more conducive to further research Insider shopping data is an obvious starting point – you can click here to see who bought shares – and the price they paid.

<p class = "canvas-canvas-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "TransCanada is not the only insider in stock to buy, so take a look at this free list of growing companies having insider purchases."data-reactid =" 49 "> TransCanada is not the only insider to buy – take a look at this. free list of growing companies having insider purchases.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Please note that the market returns quoted in this article reflect the weighted average market share returns currently traded on the CA Exchanges."data-reactid =" 50 ">Please note that the market returns quoted in this article reflect the weighted average market share returns currently traded on the CA Exchanges.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Our goal is to provide you with a long-term research analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that can be corrected, please contact the publisher at editorial-team@simplywallst.com. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.

"data-reactid =" 51 "> Our goal is to provide you with a long-term research analysis based on fundamental data.Please note that our analysis may not take into account the latest announcements of price sensitive companies or qualitative material.

If you notice an error that needs to be corrected, please contact the publisher at editorial-team@simplywallst.com. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.