Enbridge (ENB.TO)

Completed a big acquisition to continue to transition its business. Better run than TRP. See his Top Picks.

For income-seeking investors. Well run, very defensive cashflow. Diversifying business. Completed a big acquisition to continue to transition its business. Better run than TRP. Dirt cheap, 8x cashflow. Durable, defensive business model. Yield is 8%.

If rates continue to rise, delay buying this. Long-term, moving oil and gas out of western Canada is a very good business. ENB's infrastructure is already built. How shares do the next year depends on politics, rates and the Prime Minister's attitude towards oil. The yield is safe.

It's had a challenging year, but offers solid fundamentals and free cash flow. Pays a high dividend above 7%. ENB will pick up pace in 2024.

Plans to increase dividend a bright spot for investors. North America's largest natural gas utility. As interest rates fall, stock price should rise. High value assets as difficult to build new ones. Low risk business model. Scored 8/10 fundamentally. Will continue to own shares. Expecting $38 share price. 

ENB raised its dividend 3.1%; and re-iterated guidance for the current year. It had previously released 3Q earnings which did beat estimates, so today's news is not overly surprising. But the dividend bump is nice and will likely calm some nervous investors who were perhaps concerned about the dividend (we were not). ENB expects decent growth in 2024.
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Pipelines as a group are attractive for income. She owns ENB, yielding over 7%, and PPL with a yield of over 6%.

It had to issue many shares at a discount to market to buy Dominion Energy so the stock went down. A lot of the bad news is already priced into the stock. It is more of an American company since it can take more time to execute projects in Canada. Pays a 7% dividend.     Buy 11  Hold 7  Sell 2

A staple for him. Stable, growing dividend. Reliable underlying business. Put it away, go to sleep. Frustrating at times due to interest sensitivity, and recent acquisition didn't help. Will do better in second half of 2024 as interest rates start to get cut. Expects 5-handle again by late 2024.

It went ex-dividend today so shares declined and will rise until the next dividend date. This shouldn't determine whether you buy a stock or not. It yields near 8%. Some don't like their heavy debt and prefer collecting a safe 6% bond. But once bonds pay lower, like 4%, then shares like this pop up and ENB will hit $50 in a heartbeat.

Bottom of chart trend. Good time for investors to buy. Believes is a short term hold for traders. Not a good long term investment. Buying small amounts. Collecting dividend in the meantime. 

In this rapidly changing rate environment, debt can really eat up any excess cashflow. Big debt load. Interest rates have been rising faster than earnings, so you're seeing earnings compression. Large deal to purchase gas distribution assets, and now focus should turn back to de-levering. Interest rates should fall over next couple of years.

Look at level of debt to asset value, as companies can sell assets and use that to repay debt. Also look at the level of EBITDA and capital expenditures. 

He added shares on their recent financing and purchase of a US utility which diversifies their business away from pipelines. Stretches the balance sheet short term though. It's okay here.  The dividend is high, but safe.

Shares have been weak the past year. High barriers to entry and has a predictable 5-7% growth rate. Profitable with steady cash flows. Valuations have fallen to a reasonable level, but his major concern is their debt. Prefers TC for its more manageable debt.

A good way to play energy is through the pipelines. Pays a good yield, nearly 8% which he doubts will be cut. High rates have hurt this stock, nearly down to 2020 levels. Okay to enter this as rates peak and could flatline. But if rates decline, this will do quite well. Note; The BOC can keep their rate flat while the market can decline its rates.