Enbridge (ENB.TO)

Likes energy infrastructure as a highly attractive area and a key part of the energy transition. His preference in the space.

ENB has much higher quality assets and better locations. PPL has more volatility in earnings and rumoured to be interested in TMX pipeline, which is an overhang. PPL is a good company, dividend safe. But he still prefers TRP and ENB. 

Energy infrastructure stocks have been beaten up to the point where dividends are high, but you don't need to be scared of that. Rock solid. Paying down debt from free cashflow and asset sales. Debt's 4.5x, which isn't bad for energy infrastructure. Committed to increase dividend. Great projects in pipeline and great free cashflow. Can't replicate assets. Into renewables. More stable than oil & gas companies.

Pays a great dividend, but shares have been beaten up. Only 4.5% growth trades at 16x. They just beat their EBITDA by 3% and reiterated 2023 outlook. The market is concerned about forward weakness and line 5 has been an issue. But shares are too cheap to ignore. Buy.

Don't worry about the pullback, as markets are down. Peers are down too. He wouldn't put more money in. Terrific, necessary assets. Canada's safe and secure energy will now have access to the world. You'll do OK over the long term. Expects dividend increase. He prefers KEY and PPL.

Carry too much debt, and what will they do with their dividend? Is it worth the risk to buy a stock with a high dividend, but the share prices can decline, when you can buy a GIC at, say, 5%. Regulated cash flow that utilities enjoy can't suddenly raise customer rates.

Strong business with excellent assets (hard to replicate).
Safe dividend yield ~7%.
Defensive stock good for long term investors.
Investors paid to wait for capital growth.
Security of supply with fixed term contracts. 

Share price reflects general selloff in energy. Earnings and cashflow grow even in times of weakness. Great defensive business model. High dividend yield. Generates very strong cash. Reasonable valuation. Hold, and consider adding. No payout ratio red flags, despite yield around 7%.

Pays over a safe 7% dividend. Pipeline stocks move with the oil price. She would buy it down here. ENB doesn't need to, but it increases its dividend. They've long-term contracts and have a large infrastructure across Canada, and enjoying an oligopoly in Canada. They had a strong 2022, but have fallen quite a bit this year. That said, this is the time to start building a position. She also owns and likes Pembina for similar reasons.

His firm constructs a Structural Valuation Analysis (SVA) chart, which implies that there's a form and structure to the way that prices get formed in the stock market. It applies to both stocks and to the market.

There's a broad downward trend to the chart. The first thing to ask is if you really want to be in a company whose balance sheet is disappearing under your feet? If it's cheap enough, sure. But otherwise, not particularly. 

The key is the Fair Market Value (FMV), or intrinsic value, of the company. Every time the stock gets up there, it stops. That's characteristic of senior stocks. When he looks at a chart, he knows what a company can give him. ENB has come back to a very important point, which is 2x book, one of his structural resistance points. It hit there, and stepped back. Looks as though it's going down further. Too early to be in the stock. If it got around $42, he'd be more interested.

Very high dividend yield (~7%) that is expecting to remain safe. 
Pipeline infrastructure very valuable (hard to replicate).
Transports over 25% of crude oil in North America.
Price target of $58.
Will continue to hold. 

Assets are good and hard to replace. Good income. Debt levels are of concern, but they have a rigid, structured capital program to manage dividends and cashflow. Long-term nature of the business model is OK. Yield is 7.3%, which is getting into cautionary territory. 8% yield is his red-flag level.

Over the past 28 years ENB's dividend growth rate has been 10%. It has paid dividends for 68 years. Our data only goes back to 1986 and we show no cut during since then. We remain quite comfortable with it for income and would be fine buying at current levels. 
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He likes the pipelines. Valuations have plunged since 2015. No growth here, but trade at 12x earnings and pays a great dividend of 7.2%. They problems like their Michigan pipeline, but solved it. ENB is not tied to the commodity price in the oil they move. A great, safe play. Pembina is his #1 choice here and TC Energy is #3.

Steady eddy. If you own it, hold. Pretty compelling dividend yield, around 7.1%. Dividend growth has really slowed from its heady days. Dividend growth likely around 3-4%, compared to previous targets of 10-12%. Good place to hide out when clouds clear in macro environment. He owns TRP.

Yes. Likes it and its dividend yield. Pipelines often get caught up with the correction in the overall energy sector. Crude oil has pulled back. Cashflow supported by long-term contracts. A critical service, so look past short-term events.