Enbridge (ENB.TO)

Good, sustainable dividend income stream, and that's going to grow your portfolio. Big opportunity for Canadian energy is shipping to Asia via the LNG terminal. Long term, LNG will bring parity in pricing -- that will flow through to the Canadian pipeline sector. Well run. 

If it's become 10% of your portfolio, good idea to trim that back.

They reported earnings last Friday, then shares jumped 4%, but fell that much today on downgrades. They delivered on their quarter. Pays a 5% dividend that keeps growing based on growing cash flows. What's wrong with this? A lot of their capex are small and low-risk. Lots room for growth and add-ons.

Can't recommend something that just hit a 52-week high going into its report. Wait for that and a sell-off.

Like Keyera, it overdistributes. It's saying there's nothing for the company to invest in. Has owned this in the past. Prefers TC Energy for its growth.

Pipelines are more dependent on oil volume rather than price. Most pipelines are at capacity with long term contracts. If more. oil flows from Venezuela it may result in lower prices, and valuations might be pressured.  But cash flow is not likely to be hugely pressured, and any impact is not likely to be quick. US companies maintain that Venezuela is still 'uninvestable' despite what the administration says. It is not as simple as just turning on the taps. 
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Ride out the ups and downs. Isn't bothered by the Venezuela news. Also, buy Canadian; he's bullish Canada. Definitely a buying opportunity now.

The dividend is over 6% and earnings will grow at about 5%. This combines to make a rate of return at 11% which is pretty attractive for a blue chip company. Enbridge is heavy oil and oil demand is not growing that much. Natural gas is probably better because of LNG exports, its replacement value for coal and all the data centre power needed.

He'd own some of both. Diversification is always good. For a young investor, you want to help them learn. (Ryan always tells the hockey team he coaches that "You learn more from losing than from winning." ;) This pairing can show them how different stocks move at different times. When the market's doing really well and oil prices are running, you'll see that reflected in WCP. When they're not, you'll see the stability of ENB.

Doesn't own WCP, but he can see the case for it. Especially with the assets it's been able to consolidate, now much more stable and powerful than a few years ago. He'd prefer other names ahead of it -- CNQ, ARX (likes the condensate over light oil). He wants the best operators and the most stable long-term outlook.

ENB is a great long-term hold. Has come off again recently. In his portfolios, weighting of pipeline/infrastructure/renewables/utilities over producers is 3:1. Dividend yield over 5%.

Don't put a stop loss, but it trades in a range. Can trade it. Look at the $64 level, but will probably fall to $58. Is linked to commodities, so prune when this goes high. You can buy this today. Its prospects look good.

(With the market trading at such high valuations, it was really hard to find something that will outperform.)

Largest energy infrastructure company in NA. Just raised dividend 3% yesterday. Plans to grow 4% organically. Expanding main line. Has so much capex planned ($35B) for so many tuck-in projects with low regulatory risk, doesn't need to (but still might) participate in the new MOU agreement between Canada-Alberta (which has a lot of political and regulatory risk). So much of its earnings are regulated or take-or-pay. Yield is 5.76%.

Her energy exposure tends to be larger-cap such as CNQ and ENB.

A longtime favourite of his. Pays a 5.6% dividend yield. Pipeline companies aren't tied to the oil price, but oil volumes, and Washington wants more drilling. Government regulation isn't a big worry here. Is up 13% this year. Offers a lot of downside protection. Offers strong long-term growth, because data centres needs energy. ENB is in the beginnings of a major pipeline expansion to move oil from Canada to the Gulf of Mexico.

Both look kind of interesting. ENB came down and tested the 200-day MA at the end of October. In a series of higher highs and higher lows. Really great capital allocator. Has opportunities to grow with changes in political views on pipelines.

PPL also looks good. But if he had to choose one for a main portfolio holding, it would be ENB.

High quality. Can be lots of volatility in O&G sector. Value: 8/10, still sees upside of ~6%. Underperforming the market, but so has the whole energy sector. Will continue to do well with its liquids pipelines, storage and distribution, as well as renewable power. 95% of FCF is backed by long-term contracts. Decent dividend of ~5.7%.

All of its businesses are stable and well regulated. No quarrel with owning this one. He owns TRP instead. ENB has more oil exposure, whereas TRP spun off its oil pipes as SOBO. ENB is a close second to TRP. Pullback is good chance to accumulate.