Enbridge (ENB.TO)

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.

High dividend yield at ~8% that is sustainable. Likes diversity of assets. Very strong asset base. Entering renewable business. Excellent cash flows. Owns shares in portfolio. Will continue to own. Not worried about interest rates. 

Have various businesses. They bought Spectra Energy some years ago which added natural gas assets, plus a small portion of renewables. Overall, a safe investment that pays a high dividend, though the dividend growth rate will slow down as they invest less in the oil pipelines (line 3 was finally completed last year). Expect low/medium-single digit dividend increases. Is confident about ENB.

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.