Enbridge (ENB.TO)

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.

This business is a disaster. It's a challenge to make money owning it. Despite what many say, it is sensitive to oil prices. Moody's downgraded it meaning they are flirting with the idea of being below investment grade. It’s difficult to see where growth is going to come from. The 4.9% dividend yield is meaningful, but the valuation is of a growth company. There’s a lot of old money sitting in this because it’s been a great place to get yield. That continues to keep its valuation sky high, but it’s like the Titanic and very difficult for it to move around and grow.

Has a little bit of this, but his view is that 1) it might be acquired, and 2) it is always this company versus TransCanada (TRP-T). Right now he prefers TransCanada. You need to understand that Canadian pipelines are still in the utilities camp, even though they have growth embedded in their business plans. They are quasi-bond proxies. Right now, bond yields are going up and investors are going to wait to buy utilities.