Enbridge (ENB.TO)

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.

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%.