Rob Lauzon Enbridge ENB-T PAST TOP PICK Mar 25, 2024

Where will supply shift? This year, the Canadian E&Ps are outproducing all other international E&Ps, including Europe, US or Australia. He also bought ENB, which delivers the crude oil to the US. The US refiners have an insatiable need for Canadian oil. There's a 10% tariff on Canadian oil. Well, guess what--the Canadian oil companies are not eating the tariff, but rather the US refiners. If there's a shift in supply (given Mideast tensions), Canada will be able to supply that oil. US energy companies have a -12% earnings estimate this year vs. Canadian energy of only -0.20%

A lot of defensive names ran up recently as people used them as places to hide. Valuation still very attractive. Dividend yield is quite strong. Growth outlook is reasonable. Reasonable name for income. Attractive entry point would be something below $60. Yield is 6.1%.

Does fluctuate a bit with the price of oil, but not as much as a producer. Attractive income name. Federal government's infrastructure plan would be positive for pipelines, albeit a few years away. Yield is close to 6%, and the dividend increases every year.

If the leading sectors in the market are those that would benefit from a more inflationary environment (financials, materials, industrials, some energy), and they are, you want to look at the groups that are not. Things that act like bonds (utilities, staples, REITs, pipelines) are underperforming.

It could be that people piled into defensives in April, but they just haven't performed. So with other groups that are economically sensitive performing, the defensive groups are being used as a source of cash. Great dividend, and that will grow mid-single digits. He'd rather be leaning towards hedging against inflation than disinflation (which is where a pipeline would come in).

Great income name. Gets nat gas where it needs to go. Yield is 6%, and dividend grows 2-3% a year. Overall, you're looking at a 9% total return on a long-term basis. Improved capital structure by selling a pipeline in BC. Well managed.

Likes all the pipelines. Energy infrastructure spending is a huge area for Canada over the next number of years. This name is a prime beneficiary. Good dividend yield. 

The thing about this one is that the call premiums can often be weighed down by dividends. So if you're going to sell calls on something with a higher dividend, and it's a lower-volatility name, you can expect the option premium to be small. Not something he'd do, as it has a pretty good yield already of 6-7%.

Stable dividend, 30 years of consecutive dividend growth. Solid revenue pipeline, which is regulated. Earnings growth in mid-single range. Pretty healthy outlook for the stock. Price of oil has somewhat stabilized. Yield is 6%.

If you don't need the income right now, sign up for the DRIP.

The kind of stock everyone can own. Dollar-cost average in, and hold long term. Consistent, reliable, pseudo-utility though it falls under energy. Not high growth or a high ROC, as it's very capital intensive. Dividend chart and payout ratio look fantastic.

Banks look to be extended, but pipelines seem to be reaccelerating (TRP, ENB). Given his view about a potential correction coming soon, doesn't mind rotating a bit out of BMO and putting some into ENB. Likes the breakout, and thinks it's more defensive-related, not energy-related.

If you look at the Commitment of Traders data (published every Friday), commercial hedges (considered the "smart money") have been hedging crude oil less (which means they've been going longer). Something interesting is happening there.