Enbridge (ENB.TO)

It is a neutral. It has picked up some momentum recently. There will be some share issuance as they bring in the income fund. This will be a positive after the noise has passed.

Asked whether she owns any pipelines, she said she holds Enbridge and explained that it has sold off some non-core assets, improving its balance sheet. It is restructuring to simplify its structure. It has gained approval (Line 3) for expansion. And it provides an attractive yield, just over 6%. Yield 6%.

In the short term, it will be difficult to see grow. He would prefer to hold Pembina, with a little smaller profile. Investors will be attracted to this space for the income.

He thinks it goes to $34.84. Once they fold in the income fund the balance sheet will get a lot bigger, which is negative for the stock. With a 6% yield, it is all their income. There is better value elsewhere.

He owned it for a long time. He likes the balance sheet cleanup. They are amalgamating their underlying subsidiaries. He is in favor of not sticking to such a rigid dividend growth model.

Owns this because of the dividend in his income platform. It was oversold and is now beginning to consolidate. So likely will not go down below its lower level, but does not expect much upside in this stock either. Can hold for the dividend. Yield 5.8%

Trying to figure out how to fund the new acquisition. Cautious until we get more clarity on that. Prefers TransCanada. Fundamentals are not as strong as they used to be. If bullish on oil, it’s a good entry point. (Analysts’ price target is $54.88.)

He is quite bearish. The income fund has done better. When you look at the stock today he would say being a seller here makes a lot of sense as you take some risk off the table. He would move on because he does not like the uncertainty.

He wishes he owned more of it. It's been in the penalty box. They're restructuring in the U.S. Changes in tax laws will affect how they structure corporately down there. They will meet their dividend increases in the years to come. Less
expensive vs. its peers.

(A Top Pick March 1/18, Up 19%) Negativity was priced into stock from March to June. Funding profile much better. Still room to move higher. Still a lot of debt. If they focus on paying down debt and getting Line 2 built, they’ll be in great shape, with a 6% yield.

(A Top Pick August 17/17 Down 3%) He thought it would be bright to buy when it was down $8-$9. Now that Line 3 has been approved, the debt will be better serviced going forward. The dividend will continue to grow and expects to see it trade above $50 soon.

A lot of their growth through 2022 is going to come from an acquisition in the US. The dividend is not extremely high so as they reduce debt levels the stock will continue to pay out. You could buy it right now. He would prefer ENB-T on valuation but TRP-T is good also.

North American pipeline operator. Offers an attractive yield. They are doing all the right things. They got their big line 3 project approved. They had a very strong quarter and are on track to meet their guidance. They should be able to grow their dividend by 10% every year through 2020. (Analysts’ price target is $53.84)

(A top pick October 18/17, down 5%) This has been underwhelming. Were early in getting involved in the name. Have struggled with the debt load they inherited. But stock is back in gear. They got approval on their Line 3 replacement. They have cleaned up their complex corporate structure. Have divested of some core assets. Has a 6% yield and guidance to grow their dividend 10% over the next year or so.

(A Top Pick March 1/18 Up 15%). There were issues on the debt side that have been cleared up with asset sales and the headwinds associated with changing MLP rules in the US do not look as severe as before. A great company that will benefit from the Line 3 project approval. Yield 6%.