Glenn MacNeill, P.Eng. Enbridge ENB-T TOP PICK Jan 19, 2010

A quality Canadian dividend payer. The risk in any dividend stock is that the dividend can become too large for the company to pay, so they cut it, like BCE just did. He prefers ZWU.

It has run up quite a bit and its value today is where it has peaked in the past. It has benefited from interest rate cuts and has exposure to natural gas and LNG.

Reasonable valuation. Doing exactly what they said they would. Lots of capex projects, small ones and larger ones, well diversified. Today announced asset sale, so proceeds can fund growth instead of having to issue equity. Yield is almost 6%, with growth.

We now have a gateway to Asia. With tariffs, Canadian energy will not be welcome in the US. Integrated nature of its pipelines make it a long-term asset with growth capabilities that will reward shareholders well. Buy when it goes on sale, trim any gains. Good place to be, core holding for him.

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.