TSE:ENB

Enbridge (ENB.TO)

67.37
+0.18 (0.27%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
2696 watching
0
COMMENT

The Federal government is anti-pipeline? He looks at either TRP-T and ENB-T for this space. He prefers the valuation of ENB-T at this time. He likes how TRP-T is re-inventing itself however. There is a big question mark around whether Keystone pipeline will actually get built. Any hint of failing to go forward could negatively impact the TRP-T share price.

BUY

He likes both companies. There was always a concern about ENB-T being able to finance their projects but they keep proving they can. He believes they will continue to perform fairly well. They are an attractive yield play.

BUY
Big problem was buildup of debt. But this has been corrected to some degree. Decent dividend. Risk with Line 3 and 5, but regulatory risk will always be there. Valuations are more reasonable than they've been for a while.
BUY
Average down? He likes it now more than before as the dividend continues to grow. They've sold non-core assets to pay off debt. However, the line 3 pipeline is stuck in Minnesota courts and line 5 stalled in Michigan. Eventually, they will prevail in both. It's a good income story. He doesn't average down.
HOLD
Holds a rate-reset stock that's gone down. Sell now, wait for a rate rise or buy the common shares? It's double-whammy now, because rate-reset are going lower and you get less of a value with the spread. Every 5 years they reset to a spread above Canadian government bonds. Also, ENG is an oil stock which is way out of favour. He owns ENB preferreds and he's comfortable holding till interest rates turn up again. For resets, you want a wide spread and a late maturity date.
BUY ON WEAKNESS
Starting to see more certainty in the pipelines. They also diversified by making some acquisitions. The dividend is strong and will continue to be there. Could get good returns at a 5 year hold.
BUY ON WEAKNESS
Likes the pipelines, they are essentially utilities. They are under pressure as a sector. The pipelines are safe in the energy sector.
PAST TOP PICK
(A Top Pick Jun 25/18, Up 17%) A needed commodity and the existing infrastructure is very important, as it is difficult to put more pipelines in the ground. The stock is attractive. It's constantly in the news, and there is headwind from environmental groups. They also have more supply than output capacity, so pipelines are full. They are going through a recontracting of the mainline and it should make their earnings more stable with longer term contracts.
DON'T BUY
Pipelines in Canada are stable income earners. ENB-T, however is more indebted than some of their peers. He does not like heavy debt loads. He would prefer a pipeline with less debt. If interest rates ever go up they could cut their dividend.
HOLD
He owns this North American pipeline business. He likes the dividend and thinks they will continue to grow it. Two of their lines are in regulatory delays, but he thinks this will be overcome. A delay of Line 5 would actually become an international incident, he thinks, so it has to go ahead. Yield 6.5%
DON'T BUY

Much-improved balance sheet, but their lines 3 and 5 have troubles. They need line 3 to go through to grow. Line 5 is another headwind. It's okay as a yield proxy--the dividend is fine, but don't expect growth. Pembina and Transcanada are better.

PAST TOP PICK
(A Top Pick Aug 08/18, Up 3%) Quite good value here still. Line 3 and 5 risks will be manageable and should be able to stay on schedule. The company has rebalanced their balance sheet as they said they would. An attractive yield over 6%.
BUY ON WEAKNESS
Average down? Well-run and defensive. It's been pressured lately due to bad press, so now is a good time to buy. Pays a 6.6% dividend.
BUY
IPL-T IPL's valuation is higher than Enbridge's which also has better growth propsects in the U.S., though pipeline issues in the courts which he's confident will get resolved. He plays oil through the pipelines.
WAIT
It's been attracting negative headlines--fatalities in a U.S. pipeline, as well as regulatory delays in line 3 into the U.S., their biggest expansion, and government opposition to replace line 5. Yields about 7%, but it's safe. Once the dark clouds pass about pipelines, the share price will recover.
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