Enbridge (ENB.TO)

He has PPL-T which has done phenomenal. In the past they bit off too much more than they could chew. They are in retrenchment mode. It will survive. Pipelines are far more complicated now in getting permits. Hang on for many years and you will do fine. Don’t expect a quick recovery.

Dividend investment stocks have been shunned the last year. Stock correction has factored in the fed interest move this year. Some concerns that they may be over leveraged. There has been some shorting of this stock. But thinks they should be able to work through this. Pipeline businesses are very different today. Nothing is getting built because of changes in regulations. Markets are waiting for the Government to step up. Enbridge has the biggest oil pipeline. Is an attractive investment.

The dividend is attractive, but what if interest rates rise? Wait for the increase, which he believes will happen at some point, and see if the stock comes off a bit. A great company that's gone through tough times (hostility to pipelines in
Canada). It's a great long-term hold, but wait for a better entry point.

(A Top Pick June 15/17, Down 15%) Stock has pulled back for a number of reasons: the Spectra acquisition, need to do asset sales to pay for it, pulled back dividend to 10%. The Line 3 expansion approval in June is the biggest overhang. Yield is over 6%. Market is not going to give Enbridge much credit for Line 3 going through. Trading at a very attractive multiple. Income-sensitive stocks like this one have been hit. If you don’t hold it, buy half a position.

The pipelines have been pressured this year due to troubles in building pipelines. They're also interest-rate sensitive. ENB offers some decent value now with solid growth prospects. The dividend is sustainable. Look at this and start
picking away at it. There's still uncertainty around the Kinder Morgan pipeline--who will eventually buy it?

It's the biggest conundrum on Bay St. It was once a darling, but now? The collapse in oil and anti-oil sentiment has pushed this stock down. Pays a 6.5% dvidend and should grow. But its debt is nearly as large as its market cap. Can ENB survive in a world that's so anti-pipeline? Foreign investors are walking away from Canadian energy.

Owns it. Has been a great stock for them for many years, had some issues more recently. Had some issues because they couldn’t get Northern Gateway to pass. They own pipelines, gas utilities, wind farms, etc. which gives a guaranteed rate of returns, but you need to grow, so they wanted to do Northern Gateway but that was taken away from them. Now in the process of replacing Old line 3 going through the U.S., hopefully that will go through. But most recently bought Spectra Energy and probably took on too much debt to do that. Thinks its over sold now and will see some recovery. Not going to make a lot of money with pipelines and utilities while the interest rates go up.

(Past Top Pick on May 15, 2017, Down 22%) He still holds it. All the bad news is in by now, so it can't get worse. Short-term, ENB's line 3 expansion's plan B has been approved but on June 26, ENB may get approval for it's preferred plan A route which will result in either $4 upside or $2 downside. Wait for an entry point. The current dividend yield of 6.6% is their highest ever.

He would stay away given all the problems that the company has. Finance minister is going to make announcements soon but could be disappointments. The yield is very attractive. Debt level high.

(Past Top Pick on July 12, 2017, Down 14%) They've endured a perfect storm: rising interest rates; high debt,; Ottawa disallowed a key tax deduction; and delays on their flagship line 3 expansion running through Minnesota. But he's hopeful. They posted a good qaurter and believes Minnesota will greenlight line 3. This is an epic buying opportunity.

In the U.S., changes in tax law for MLP’s hurt Enbridge’s ability to drop down assets into a more beneficial tax rate. In Canada, the problems of building new pipelines conflict with Enbridge’s planned future infrastructure projects. He is not worried about the dividend yield. The business would have to get a lot worse before it cuts the dividend. However, if the yield gets up to 7%, which will happen if the stock drops another 10%, he thinks the company will have to look at its yield.

(A Top Pick March 1/18 - Up 5%.) He really likes it. Still one of his top picks. They have been pounding the table about this name. Double down on their position around mid-November.

Just reported strong earnings. All the negative headlines are fully on the stock. They are putting 50-year assets in the ground. Yield 6.2%. (Analysts’ price target is $52.12)

The dividend is safe. The overhang is the Line 3 expansion awaiting final approval from Minnesota, expected mid-2018. The company is confident, and has gotten approvals elsehwere. If this happens, it will be a definite
catalyst. You can buy a half-position now and see if the decision is positive.

He has been negative on the pipelines for a number of years because they took on a lot of debt and increase the dividend only by increasing the payout ratio. He is not ready to step into it here. Rising interest rates will continue to put pressure on the sector. They need to use cash flow to reduce debt to be more sustainable.