Opinions Randy LeClair
EnbridgeENB.TOCOMMENTSep 30, 2013
Randy LeClairStock price when the opinion was issued
As of Oct 01, 2026. Market Open.
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Probably this one. Spending likely to be stronger in terms of infrastructure spend on pipelines. Valuation's more attractive than it's been for a while. He worries a bit about Line 5 in Michigan, with permits and pushback (will ultimately get done).
He bought some on the financing deal. With all the infrastructure spending, there have to be more pipeline expenditures going forward. Somewhat more defensive.
John Zechner
He owns many pipelines which have tons of value. It's a defensive sector. Canadian pipelines and nat gas are overlooked. Is a good trade.
Keith RichardsIt is another defensive stock with over a 5% yield and has growth at these levels. Blackstone is knocking at the door and could buy some assets from them in the US. He likes the new CEO appointment.
On defensive stocks in general he looks for companies with good cash flow to manage with which they can make counter-cyclical acquisitions, raise dividends and survive market downturns. Buy 11 Hold 9 Sell 2
Ryan BushellIs good for income. He just bought it at $70 due to rising interest rates. Yields 5.3%. Any sell-off is attractive.
Eric NuttallExcellent, very-well-managed company. Great financial discipline. Nice dividend of 5.5%, tax-advantaged over bonds. Expected EBITDA growth is ~5%. Payout ratio ~65%, not much room for dividend increases (~2-3% a year). Highly capital-intensive, fair amount of debt. Cost of debt going up makes it hard for valuation to go higher.
More attractive are companies with dividends that may be lower, but growing rapidly.
Maintaining the dividend is not a challenge, and it will continue to grow. Under pressure because of the assumption that peace will come to the Strait of Hormuz. But the space ran up in the first place due to the conflict. Just look at the chart. Big capex program, growth in various businesses.
Blue-chip company, ballast for your portfolio. Buy, put it away for the dividend. His firm has owned for ~27 years, and they've been happy campers reaping the income.
Darren Sissons
Pays a 4.5% dividend that will grow. They have the largest crude oil pipeline network in North America. They own nat gas operations in the U.S. They have a backlog that can grow their cash flow by 5%. Will benefit from Ottawa's infrastructure growth in western Canada.
Christine PooleYield is a bit lower than some of the others. Results were largely in line, market reaction may just be due to whipsawing from Iran war. As well, not immediately proceeding with an expansion. Still a very good name, though he owns PPL for its size and growth.
Any of Canada's 4 major pipelines are good investments for the long term.
He doesn't own any of the pure-play oil producers right now (though he does own TOU). The reason is the volatility we're seeing.
His team plays energy these days by owning ENB, and some of the smaller midstream companies like PPL and GEI. He likes their stability.
Andrew Pink
$US Series L and Series 1 fixed cumulative preferred shares as a way to earn US income within Canada. What happens on the dividend reset and is the dividend available for the dividend tax credit? Nice match if you’ve got US commitments or need US income. These are usually issued for 5 years at a fixed rate and at the end of that time, the company has the 1st option to either redeem or allow it to go to the reset at a pre-established spread when they initially issued it. When it goes to reset, the investor has the option to go for the next 5 years of either fixed or floating. Not a tax expert, but he believes that because it is a Canadian company, currency doesn’t really matter, and you should be eligible for the dividend tax credit. (Check with your tax advisor.)