Enbridge (ENB.TO)

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%.

He is not a fan of it. It has a strong brand in Canada and pays a great dividend but that is about it. A lot of investors underestimate its risk. He thinks their restructuring is positive. But it is going to take some time.

After buying assets from Sempra in the US, they have been selling assets to reduce pressure on the balance sheet. The advancement of the Line 3 project is positive. He would continue to hold it and sees it as a symbol of the revival in North American energy. He thinks the dividend is safe, although the growth is slowing.

The sale of some of their assets to Brookfield makes a lot of sense. Takes away some of the worries that some people had on funding. Some assets sales are going to come in the next while. Spectra was a good acquisition for them. They are in a much better situation than they were a few months ago.

He does not own pipelines. They have come down a lot. The bigger issue has been regulatory issues. They are fighting a big headwind with our governments today. As it gets cheaper and cheaper it could look attractive to him but with today's regulatory environment, it does not.

This is another interest-sensitive stock that is at risk from rising interest rates. It is overvalued by 10% compared to his model. The company is doing a whole lot of financial engineering. He would like to see the balance sheet after all the shenanigans are finished. He think that ultimately the stock will go to about $35.

The risk-reward is favourable. He sees support near $40 and would begin to build a position here between $40 and $46 and would add to it above that range.

You have to look at the quality of the business behind the high dividend when selecting a dividend paying stock. On one hand they are increasing the dividend but on the other they are decreasing the debt. Just looking at the yield is over simplifying it. He would own if after knowing the risk is mitigated in the price of the stock.