Enbridge (ENB.TO)

An income pick. Defensive, cashflows go up even in recessions. Purchase of 3 US gas utilities further diversifies it. Half of cashflow will come from oil pipelines, half from nat gas and renewables. Can take advantage of opportunities in an awkward market. Yield is 8.08%.

Purchase of 3 US gas utilities adds debt, but puts them in a good place for future growth. Issued equity to cover the purchase. Prospect to increase dividends over the years. Still talks about dividend raises of 5-6%, but remains to be seen. Beaten down as a yield stock, good time to look at it for income. Yield is 8.1%.

Shares have been down because interest rates keep rising, therefore making ENB's dividend look less attractive. He doesn't understand their deal with Dominion.

Expecting further growth in the long term (5-10 years). Buying at current price ($43) a great price. Will continue to hold - excellent long term assets. Slightly worried about debt levels - but cash flow is still strong. Ability to raise prices. 

Payout ratio 69%, so dividend looks safe for next 2 years. Models EPS growth around 5.5%. Trades around 15x. Limited downside. Nervous of levered balance sheet. Newest acquisitions at wrong time. He's comfortable buying. Yield is over 8%.

Not sure. It could go lower. A solid company, but carries enormous debt. A point to consider if they make an acquisition. They have fine assets with long-term value. We won't stop using natural gas. Pays a 8.25% dividend which is sustainable.

Higher interest rates have been a headwind. Likes the yield on ENB (over 7%) and PPL (6.5%).

Historically a good business to invest in.
Size of company making it difficult to earn large returns.
Higher debt load a concern.
If share price falls, would invest.
Current share price too high.
Legacy assets are valuable.

Real political risk, in that neither Trudeau nor Biden likes the primary business. More volume sensitive than price sensitive to oil and nat gas. Political roadblocks to near-term attractiveness. Long-term, very good for fairly stable income. Oligopolies, local monopolies. Not the growth of 20 years ago.

Always a concern when companies crank up the debt, and using debt to continue to pay dividends. Does have cashflow, but it's leveraged and more so than peers. He'd be happier if it reduced debt. Yield is 7.8%, don't be seduced.

History of growing dividend almost every single year.
Current yield ~7%.
Expecting a ~$50 share price in 2024.
Falling interest rates will increase value of share price.
Very attractive assets that are hard to replicate.
Excellent technology in energy transition.

Solid company. Pipeline companies get lumped into the energy sector. Backbone infrastructure assets. So hard and expensive to build more in the sector. Dividend aristocrat.

Lots of debt on company, but is sustainable given structure.
Energy infrastructure sector undervalued.
Worry that assets stranded not a valid concern.
Energy demand rising - will make infrastructure assets very valuable.
Good long term investment.
Strong dividend at 7.5% - believes is sustainable. 

Doesn't show a lot of growth, trading around 16x. You can get banks at 8-9x, with a similar amount of growth. Both good long-term wealth builders at these levels. ENB has more upside over the next year or two. With higher rates, servicing the debt does become an issue.

He likes it and the gas distribution business should do well in Canada. It has great assets and is one of the only ways to distribute hydro-carbon assets to markets outside of Canada.. He is comfortable with the debt and it pays a dividend of over 7%