Enbridge (ENB.TO)

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.)

Has been a little frustrating. Despite the slow incline, it has been pretty orderly and not choppy. We are getting close to a place where some interest will come in, but it might have to go a little lower. The action in late 2015 and early 2016 was pretty significant, and we are not that far away from it. You might be in the ballpark right where it is. There might be a 10% risk from now to the downside, which might be a little higher than what he would like. Prefers Inter Pipeline (IPL-T).

Trying to get producers to market, and the producers have amalgamated and improved things, but the overall effect is not really helping. A very inventive and innovative company. It’s the most aggressive of the Canadian pipeline companies. 5.5% dividend yield.

One of the world’s largest pipeline companies, and a leader in North America in oil transportation. A great, long term company. Has a fair bit of growth projects coming at them. Part of the issue is debt. People are worried they are going to have to raise more equity. There is a chance we could see an equity issue in the next year. With that overhang, the stock may just be going sideways. At these levels, it looks like reasonable value, but don’t expect much upward movement until there is more clarity. If you already own this, you are probably safe in just sitting tight. Dividend yield of 5.5%.

There’ve been negative estimate revisions recently. Ranks 210 out of 700 stocks. Sales were down 39% year-over-year, when they reported on Nov 2. Earnings were down 22%, and estimates have been shaved by 3%. PE is 18X for 2018. Thinks you can find other stocks with rising earnings and free cash flow giving you a better return.

A stock people want to stick in their portfolios in the hope that the price will gradually go up. In the meantime, they are getting the dividend. It had some performance issues lately and the stock suffered. He would prefer something like Fortis (FTS-T), Canadian Utilities (CU-T), Pembina Pipeline (PPL-T) or Keyera (KEY-T), which have good dividends. Dividend yield of 5.5%.

An energy stock, and energy has gone from $100 down to $50. Pipelines, because of the stability of their business models, tend not to get immediate reaction. They’re expanding their heavy oil pipelines into the US, which is good. The company is heavily indebted and requires contracts. Believes the dividend will be increased. If you are going to be energy sector, this is as good a way to play as any. Dividend yield of 5.3%.

Hitting new multiyear lows. When they recently reported 3^rd quarter earnings, they were asked about their dividend policy, where they had indicated they can grow their dividend 10%-12% annually to 2024. That’s been their stance for a number of quarters. The company said they were finalizing plans and would be addressing this at their investors day mid December. Feels this affected the stock. The market does not like uncertainty.

Hasn't liked this for a while. It's not a problem with the company as much as it is with the valuation. All utilities had valuations of around 20X earnings. That was because of the dividend yield. This one has a 225 estimate of earnings, and they pay a dividend of 225. They are paying out all their earnings as dividends. On top of that, when they did the recent US acquisition, they really levered up the balance sheet. The Debt to Operating Cash Flow ratios is about 6 or 7 times. There's not much organic growth.

Thinks a lot of people were buying this at around $49, its 52-week lows, which is usually a bad sign when too many people are too complacent. People are concerned about its debt level. They have normally been telegraphing 10%-12% growth, and have backed away from that and are waiting until Dec 12. This is cheap at 17X. Still has very brisk growth, however, they’ve maintained their guidance. Thinks they have lots of funding abilities through drop downs, asset sales, etc. He would be picking away at this right now.

The Dividend went to 5.1%, which is the highest yield in 10 years, given today’s sell off. They missed by about 3 cents. They confirmed the business for the year. It is really just a postponement until the next quarter so he is not worried about the results. He quite likes it. He is surprised at the reaction. If you miss right now, you get punished.