Enbridge (ENB.TO)

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).

He likes pipelines when compared to the producers or explorers, because it doesn't matter what oil prices are. He would be cautious with dividend stocks as rates are rising. Dividend stocks did tremendously well in 2006 when interest rates were coming down. When someone needs fixed income earnings they were getting 1.5% from a 10-year bond 6 months ago, which is now 2%-2.5%, making dividend stocks less attractive. When rates are going down, you want to be involved in dividend stocks, but when rates are rising, you need to be careful. Feels the upside is somewhat limited, and there may be better opportunities for your capital. Dividend yield of 5.5%.

Probably a Buy, unless interest rates start accelerating. He would certainly feel it is a long-term hold. As long as you don't need your capital in the next 5 years, then you are going to earn money that you can't possibly earn in the banks. A very strongly backed company. 7.8% dividend yield.

Enbridge (ENB-T) or Inter Pipeline (IPL-T)? This is kind of like "which of your children do you love best?". He owns both. Both have good dividend yields, but are a little different in their business mix and potential catalyst. With this, you get a nice dividend yield, but also have a very well articulated plan to grow the dividend at a 10%ish compound rate between now and 2021.

Pipelines? Canada is producing way more oil than what we can get out, so there is a long-term demand for pipeline capacity. Because of a tight Canadian market, they are expensive on a global basis. This one has made big US acquisitions, because US companies are cheaper. The outlook for projects in all these companies is very strong. You should be fine in any of them.

A great level to buy this. After they reported, they hadn't reconfirmed the guidance for dividend growth, so there was uncertainty. There was speculation they were going to have to do an equity raise, which they did. With the Spectra acquisition, their capital program is massive so it’s a highly leveraged company. Adding equity at the level they did was the right thing to do. He bought more when it sold off. A great company to own.