Enbridge (ENB.TO)

(A Top Pick Jun 27/16, Down 18.16%) It was interest rates. They need to sell some assets for their funding plan. The market has never been better so he is not sure what the problem is.

One of the two pipelines she owns. Attractive entry point now. They have a big project in Minnesota that is still waiting for approval (Line 3 expansion). Company is confident they will get the approval in the second quarter. Market doesn’t like the uncertainty. An attractive income name. (Analysts’ price target is $56.42)

A core position for him. Enbridge will continue to be good with dividend increases for at least three more years at 8-10% annually. They made a big U.S. acquisition, so funding that has been problematic. They have to sell asets, but they've been slow to. Basically, they need a lot of cash. DRIP, issuing preferreds and hybrids help cash flow, but they still need to do $3-4 billion in asset sales. Definitely hold, though you could buy a little more here if you have a small position

Is the dividend safe? He thinks the dividend is at risk. This is a challenged space, but longer term supply is growing in US markets making a tolling business difficult. For the past 30 years it made sense to play pipelines instead of producers, but now it is different. Yield 6.6%.

This has been caught up in the hate on the the Canadian energy space and the backup in interest rate stocks. AT this price you are buying a great Canadian company at an inexpensive multiple. It offers a 6% dividend yield. They have to deleverage their balance sheet, but this is the right time to buy (Analysts’ price target is 56.63$)

It is now at a valuation that is fair. Don’t bail out. Line 3 is going to come through. The Dividend is 6.3%.

Enbridge Income Fund (ENF-T) or Enbridge Pipeline (ENB-T)? He would not buy either of these. He sold the Fund about two weeks ago. He believes prices will go lower for both. The company’s recent acquisition has stressed the balance sheet. He fears rising interest rates will push this value lower – especially for the Fund. He might go in when yields go above 12%, but there is a way to go.

The stock markets exaggerate everything. 6.2% dividend, 66% payout ratio. Very easy for them to get their balance sheet to a normal level in the next couple of years by selling non-core assets. A name you can buy or sell a put. You are going to be fine owning this company longer term.

It's come off so much that it's finally reached a point where he can recommend it. Secure yield. Well-managed. He's confident they can reach their target to increase their dividend 10% through 2020. Have a project backlog of $22 billion. 6.2% yield (Analyst’s price target is $56.)

It is more interest sensitive. It is a well positioned company, but has a huge debt. It has gone down for some time. It may start to correct itself.

Ranks 191 in the 700 stocks in his database, which is top 20%. The dividend has gone up recently as the stock price has declined. The dividend is well-covered. However, he does not anticipate near-term growth of the business or of the dividend.

Enbridge Inc (ENB-T) vs TransCanada (TRP-T). He only owns ENB-T and definitely prefers it to TRP-T. ENB-T made a major acquisition last year with Spectra Energy and has been selling assets to bring down debt. If Line 3 expansion will be allowed it will be a good hold. Yield 6.2%.

Part of the defensive theme. For long-term investor there is a place to hang your hat at the 40 dollars level. Good place to put your money.

He has not liked this stock for the last couple of years due to a lack of growth and a high multiple. It has a stretched balance sheet but now he is buying it because of the valuation. The dividend is close to earnings and he was not comfortable with that. With the yield and safety he has been buying it.

This is one of two pipeline companies she owns. She liked the Spectra acquisition because it diversifies them out of liquids into natural gas and increased their exposure to the US. They are now half natural gas. They increased their debt but sold off assets and equity to limit their level of debt. The pullback in their price was to be expected as interest rates rose. This is normal for this sector. However, she considers the ENB pullback overdone. ENB is waiting for approval for its Line 3 project, to double the capacity of its pipe. They expect approval in the spring. The dividend is high at this level, about 6%. She considers the dividend safe, taking about 65% of cash available from operations. The company has announced that it plans to increase the dividend every year into 2020.