TransCanada Corporation (TSX, NYSE: TRP) (TransCanada or the Company) today announced that the Board of Directors (Board) of TransCanada declared a quarterly dividend of $0.44 per common share for the quarter ending September 30, 2012, on the Company's outstanding common shares.  The common share dividend is payable on October 31, 2012, to shareholders of record at the close of business on September 28, 2012.

The Board also declared the following regular dividends on TransCanada's preferred shares:

A quarterly dividend of $0.2875 per share for the period ending September 30, 2012, on TransCanada's outstanding Cumulative Redeemable First Preferred Shares, Series 1. The dividend is payable on September 28, 2012, to shareholders of record at the close of business on August 31, 2012.

A quarterly dividend of $0.25 per share for the period ending September 30, 2012, on TransCanada's outstanding Cumulative Redeemable First Preferred Shares, Series 3. The dividend is payable on September 28, 2012, to shareholders of record at the close of business on August 31, 2012.

A quarterly dividend of $0.275 per share for the period ending October 30, 2012, on TransCanada's outstanding Cumulative Redeemable First Preferred Shares, Series 5. The dividend is payable on October 30, 2012, to shareholders of record at the close of business on September 28, 2012.

In addition, the Board declared the following regular dividends on TransCanada PipeLines Limited (TCPL) preferred shares:

Dividend Number 56 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series U in the amount of $0.70 per share for the period ending October 30, 2012. The dividend is payable on October 30, 2012, to shareholders of record at the close of business on September 28, 2012.

Dividend Number 55 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series Y in the amount of $0.70 per share for the period ending November 1, 2012. The dividend is payable on November 1, 2012, to shareholders of record at the close of business on September 28, 2012.

These dividends are designated by TransCanada and TCPL to be eligible dividends for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. 

Common shares purchased with reinvested cash dividends under TransCanada's Dividend Reinvestment and Share Purchase Plan (DRP) will be acquired on the Toronto Stock Exchange at 100 per cent of the five-day weighted average purchase price. The DRP is available for dividends payable on TransCanada's common and preferred shares and TCPL's preferred shares.