Enbridge (ENB.TO)

He likes the pipelines generally. Over 5 years we came from much lower levels. There is a lot of resistance now. You will not see a sustainable move above those levels from $100 oil. There is value down into the low $40s. It has a good dividend yield. He likes the ZWU-T because it also has telcos and other regular type utilities and has a 6%+ yield.

Technically, this has just broken a support level today. The stock is in a downward trend, so there is downside risk technically. It has yet to show signs of bottoming. Historically, it has done well in the summer, but is just not doing it this year. There are better opportunities elsewhere.

Sell or Hold? The world has not been kind to pipelines recently. It is more psychological that they are tied into the energy sector, which has been a total disaster. He would hang in there. It is a utility, and he doesn’t see any cessation of oil running through pipelines. Well-run. They have no problem finding financing. We are going to need the services of the pipelines for the foreseeable future. Dividend yield of 4.96%.

A 4.8% yield. Some energy infrastructure companies are way out of favour. They can grow their dividend 10-12% over the next 4 to 5 years. 82% payout and it is not being reflected in the market. It is a dividend champion. A stale, low volatile stock. (Analysts’ target: $62.00).

Enbridge (ENB-T) or Enbridge Income Fund Holdings (ENF-T)? He added this about 2 years ago. He loves the boldness of the Spectra Energy deal. A really well run company. He prefers this one.

TRP-T vs. ENB-T. TRP-T has generation as well as transmission. ENB has more retail as well as wholesale transmission. They are both favoured by income seekers. When there was talk of increasing interest rates at the BOC, these stocks tended to go down. This makes him nervous about the pipelines and utilities. He owns TRP-T and feels everyone should own one of them. You won’t go too far wrong with either one.

There was a knee jerk reaction. He likes it. It is one of the safest yields you will get in pipelines. They announced a plan to increase the dividend over the years. If it fits your mandate he would consider it.

It traded at a 5 year high yesterday. They are raising the dividend 12% through 2020. Yield and growth. It has pulled back to a nice entry point. (Analysts’ target: $62.00).

This is an attractive entry point. They acquired Spectra. Enbridge is typically more of a crude oil pipeline. Spectra is natural gas, and is all US, so it expanded their geographic scope as well as diversifying their commodity base. The company indicated that they feel they can grow their dividend 10%-12% annually to 2024.

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T)? He likes this company. Sometimes, they sell things to the Enbridge Income Fund, and he prefers to own Enbridge itself. Made a big huge acquisition in the US and ended up with a lot of debt. Expects they won’t see their growth happening in Canada any more. Thinks they will be able to continue to pay down the debt. Dividend yield of 4.7%.

Over time, this has probably been one of the best performing Canadian stocks over 50 years. They’ve had some difficult times, particularly with respect to their potential investments. To him, it is a great way to own the equivalent of what might be a railroad. No new pipelines are going to be built. They have the infrastructure in place. A good time to be picking this up. Dividend yield of 4.6%.

One of the few energy companies he would own. Pipeline infrastructure gets compensated, not on the price of oil, but on cost return metrics. This company has a whole plethora of new projects coming on, and they talk about dividend growth of up to 10% per annum over the next few years. Not cheap, but a decent hold, and you should make a little bit of money over the long-term.

It was a great performer and then earlier this year it was a poor performer. He does not average up or down.

Has owned some of this for a long time, and the only reason he hasn’t sold it is that he doesn’t want to pay the tax. The company has been treading water and is down about 7% year to date. It has been pursuing a growth by acquisition strategy, and doing it by raising its dividend to attract investors, and selling stock to pay for the dividend. They have been selling stock endlessly for 10 years now. They’ve exhausted the investment community. Very, very complex balance sheet.

(Market Call Minute.)