Prakash HariharanEnbridgeENB.TOCOMMENTAug 24, 2018

Lots of energy demand out there. They continue to grow and execute. Trades at 22-26x PE, a little high, but they are consistent in earnings and cash flow. It's defensive but has spurts of growth. Energy is fine, but prefers utilities.

Has been an income stock for her for many years. Is the biggest pipeline company in the world while their renewable business is growing. Wars are pushing governments to secure energy supplies. They serve 75% of refineries in the US Gulf Coast. Canada wants to build more energy infrastructure. Both are tailwinds. But we need to see higher production growth from energy products and Indigenous support for new pipelines. Pays a 5.3% dividend that keeps growing. 

He's a buyer over time, wouldn't rush in today. Doesn't benefit directly from energy  exposure, more of an energy proxy. Too late for a tactical buy right now. Price has gone up on oil, but nothing with the company has really changed.

Are similar in terms of RSI. They trend in the same direction on the charts, with TC performing a little better recently. Sees little difference between the two.

They move 30% of the crude oil produced in North America and nearly 20% of natural gas consumed by the US. They benefit from the current LNG boom through their LNG terminal in BC which will enter service in 2027. He likes it for being a pipeline operator with a fine 5.3% dividend.

Given that we're relatively early-stage in a Canadian O&G bull market, he'd lean toward energy infrastructure. Don't have to look much further than this name.

Exceedingly disciplined at making investments. Beneficiary of the capital spending cycle in energy. Yield is 5%, growing at low single digits every year.

Pays over a 5% dividend, which they raised 3% last December. She owns pipelines in the energy space. Cash flows are visible. They can grow EBITDA around 5% through 2030. Has a strong backlog of orders. 

Good, sustainable dividend income stream, and that's going to grow your portfolio. Big opportunity for Canadian energy is shipping to Asia via the LNG terminal. Long term, LNG will bring parity in pricing -- that will flow through to the Canadian pipeline sector. Well run. 

If it's become 10% of your portfolio, good idea to trim that back.

They reported earnings last Friday, then shares jumped 4%, but fell that much today on downgrades. They delivered on their quarter. Pays a 5% dividend that keeps growing based on growing cash flows. What's wrong with this? A lot of their capex are small and low-risk. Lots room for growth and add-ons.

Can't recommend something that just hit a 52-week high going into its report. Wait for that and a sell-off.

Like Keyera, it overdistributes. It's saying there's nothing for the company to invest in. Has owned this in the past. Prefers TC Energy for its growth.

Pipelines are more dependent on oil volume rather than price. Most pipelines are at capacity with long term contracts. If more. oil flows from Venezuela it may result in lower prices, and valuations might be pressured.  But cash flow is not likely to be hugely pressured, and any impact is not likely to be quick. US companies maintain that Venezuela is still 'uninvestable' despite what the administration says. It is not as simple as just turning on the taps. 
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Ride out the ups and downs. Isn't bothered by the Venezuela news. Also, buy Canadian; he's bullish Canada. Definitely a buying opportunity now.

The dividend is over 6% and earnings will grow at about 5%. This combines to make a rate of return at 11% which is pretty attractive for a blue chip company. Enbridge is heavy oil and oil demand is not growing that much. Natural gas is probably better because of LNG exports, its replacement value for coal and all the data centre power needed.

He'd own some of both. Diversification is always good. For a young investor, you want to help them learn. (Ryan always tells the hockey team he coaches that "You learn more from losing than from winning." ;) This pairing can show them how different stocks move at different times. When the market's doing really well and oil prices are running, you'll see that reflected in WCP. When they're not, you'll see the stability of ENB.

Doesn't own WCP, but he can see the case for it. Especially with the assets it's been able to consolidate, now much more stable and powerful than a few years ago. He'd prefer other names ahead of it -- CNQ, ARX (likes the condensate over light oil). He wants the best operators and the most stable long-term outlook.

ENB is a great long-term hold. Has come off again recently. In his portfolios, weighting of pipeline/infrastructure/renewables/utilities over producers is 3:1. Dividend yield over 5%.