Stock price when the opinion was issued
This is her pick today for income. Operates largest liquids pipeline around the world. Transports 30% of crude oil produced in NA. Nat gas pipeline transports 20% of what's consumed in US. Purchased 3 nat gas utilities, regulated and defensive cashflow stream. Solid backlog of growth projects. She'd buy here with the pullback. Yield is 6.3%; dividend increased for 30 consecutive years.
(Analysts’ price target is $64.56)Prefers TRP. Still, a mighty solid company and second-best of this peer group. This pullback is buyable. Yield is ~6.3%, growing at about a 3% over last 5 years (significant slowdown from a decade ago). Good line of sight to high single-digit total shareholder return.
Not particularly cyclical or prone to fluctuating commodity prices; 90+% of business is rate-regulated and take-or-pay. Slowly greening the company.
Oil price doing a bit better. Pipeline/utility mid-cap part of energy has done extremely well, holding up better than the producers. Great run second half last year, now sideways range. This is normal consolidation. Acting extremely well, very well supported, picking up within its current trading range.
It's hard for a non-expert to get a handle on how embedded energy infrastructure in NA really is. A lot of the oil coming from Canada into the US can't easily be replaced. Even if the US does produce a lot of oil itself, there are many factors to consider: where does it need to go, where does it need to be refined, and what grade is it. It's not like an on/off switch.
Largest oil pipeline operator in Canada. Pipelines are still the cheapest and fastest way to transport. Cheaper than rails. From what she understands, it doesn't seem that the pipelines themselves will be hit by tariffs. Recent move in the CAD would mitigate any tariff impact; even if not, the US depends on oil in this pipeline, so volume likely wouldn't be disrupted. Yield is 6%.
Long-term hold and is the dividend safe? Doesn’t own this because it is large and when they do have growth projects, it is harder to move the needle relative to some of the smaller companies. They do have some pretty good visible long-term growth and it is looking quite attractive here. He would suggest that you nibble away and leave yourself some room in case it does get cheaper.