Enbridge (ENB.TO)

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.

Interest-sensitive name where there is no obvious prospect for growth.

A great company, but pause on the utilities space for now given rising interest rates. Now's a good time to sell then buy cheaper later for all utilities.

He would be cautious. The yield is OK, but you can find better yield somewhere. Energy sector is under a cloud. He doesn’t like the Energy sector. Yield 6.2%

Interest rates going up have hurt yield names. It has a 6% yield and this has historically been a great time to own this stock. He would prefer this to TRP-T.

He likes it. 5% dividend yield. They made a big acquisition and took on large debt and people were worried with a large equity issue. They are making a commitment to the US because they feel that in Canada is not working as easily. He sees growth coming from the US. He thinks there is value at this level.

Hasn’t been a fan of pipeline stocks for a long time. There has not been great earnings growth for a decade or so, but they’ve been increasing their dividend, which is secure and solid. A minimal growth business, low growth for sure. It’s being hammered by rising interest rates. Dividend yield of almost 6%.

Chart shows a shoulder to shoulder formation. You have 2 years of people who are Long and Wrong, so now it is going lower. The baseline of the shoulders is at around $50, and the stock is now at $47. Unfortunately, we are heading lower. Pipelines are a tough, tough business now. 5.7% dividend yield.

They have 7-10 years of earnings and dividend growth. The stock should probably be $60, not $50. (Analysts’ target: $59).