Enbridge (ENB.TO)

Why is there such a disconnect between the flat earnings trend in the last 4 years, the high rising debt levels, and that they have an extremely generous dividend policy? A lot of people are asking the same question. This one is not on his "favourites" list at all. The political situation for this company and TransCanada (TRP-T) is that the politics of the world have become very negative for large pipelines. He thought this company's Northern Gateway was doomed from the start. They are not paying enough attention to the political aspects and the political environment. He would not recommend this.

Inter Pipeline (IPL-T) or Enbridge (ENB-T)? If she had to choose between one or the other, her preference would be this. It has been held back by the uncertainty of the financing of their capital program and that has now been alleviated. Also, they are more diversified getting into natural gas.

She likes the Spectra acquisition they did as it diversified them into the US and international gas. They issued $1.5 billion in a new equity issue amongst 3 private institutions, so the overhang on their funding requirements has been alleviated. Dividend yield of 5.4%, and have confirmed dividend growth of 10% annually to 2020. (Analysts' price target is $60.)

(A Top Pick June 20/17. Up 2%.) One of his few plays in energy. He likes it because of the substantial discount. It had come down from its high of $65. They have the takeovers and the rebuilding of Line 3. The stock held back because there was a lot of financing to come. A lot of that is behind them now and this can now gradually start to appreciate. Dividend yield of 5.5%.

Has owned this since it became public, and adds and trims depending on the value of the stock. Made a big US acquisition and the balance sheet got out of whack, so there was some concern about the rate of growth of the dividend. They’ve announced they are going to do some asset sales as well as doing a private equity issue to its 3 largest shareholders, along with an equity issue in the Enbridge Income Fund (ENF-T). Did a preferred share issue and are likely to do some more hybrid debt/preferreds. They’ll get the balance sheet in order in the next couple of years. There is a lot of growth expected on the US side of things, mostly related to natural gas. 5.5% dividend yield.

He has no idea where oil is going to go. There are so many competing forces. In the next recession we will see oil go to $20 - $30. In 2018 he guesses it will be between $50 and $75 a barrel. He likes pipelines more than exploration companies as they are less reliant on the price of oil. He would not be adverse to adding ENB-T at this point.

It is one of those great Canadian companies that fell on hard times. Pipelines are not getting completed as fast as the market expected. They have projects coming up that support their growth. The stock got tanked because of concerns about raising equity. They fixed the balance sheet. This is wonderful – better than a bank. (Analysts’ target: $60.00).

If you hold it, then continue. You will be paid to hold it and they are bumping up the dividend next year but there will not be capital appreciation so don’t buy it.

He likes it. It did well on the TSX today on the back of a corporate update they released yesterday after the close. They acquired SE-N earlier this year and it was the largest acquisition in their history. This is now the largest utility in North America. Their update last night increased the dividend 10%, announced a private equity financing, and maintenance of their investment grade credit rating. They are scaling down their capital project plans over the next few years. We should see more good things coming out of this company.

Inter-Pipe (IPL-T) or Enbridge (ENB-T)? He likes both. Just bought this at $43. It has slightly more opportunity as they got hit so hard. Both are toll booth investments, but the street is typing this as an oil company. The yield is excellent. If he were being pushed, he would say he likes this one better.

This normally does very well from approximately the middle of January until approximately May of each year. Technically the stock is not looking good. It is in a distinct downward trend. There will probably be some support at around $40. Watch this between now and January, when typically the stock has a nice little upside move.

PPL-T vs. ENB-T. He prefers TRP-T or ENF-T. ENF-T yields almost 7% and has higher growth expectations than the parent, ENB-T. It is down at the moment. TRP-T is natural gas weighted and he believes it has a brighter future than oil.

Has been Short this for a long time, but recently covered his positions by buying Calls. They have a ton of debt, and for the last several quarters, have been hitting negative free cash flow of about $1 billion or more, while also paying a dividend.

Has been a poorer performer this year, down about 20% or so. It comes on the heels of making a large acquisition. Up until this year, this was largely an oil based pipeline company. They bought Spectra Energy which diversified them much more into natural gas pipelines. Took on a lot of debt doing it. He doesn’t believe the dividend is in jeopardy, but it is now a “show me” stock. They are having an investor day in a few weeks, where he hopes there will be more information. Yields about 5.5%, the highest yield it has ever had. Believes the dividend is safe. If you are a value investor, you are buying a great company with growing and excellent income at a good price.

They bought the Spectra assets, and the US shareholders looked to unload their shares, and the stock started to move sideways. There is a little concern around their ability to fund projects moving forward, possibly leading to issuing some equity, perhaps sell off some projects, but ultimately they’re guided towards 10%-12% dividend growth through 2024. This is on sale now, and it doesn’t go on sale very often. Dividend yield of 5.2%. (Analysts’ price target is $60.00.)