Enbridge (ENB.TO)

Reduced their 2017 guidance as a result of the Spectra integration. More recently, it fell on an announcement of some line-3 delays. Doesn’t think this is going to affect 2018. Trading at a cheaper multiple than it has for a while. Has 11% EPS growth over the next couple of years. Also, when they announced the delay, the market saw that and took the stock down, but didn’t applaud the fact that they had announced $2 billion in new projects over the next couple of years. A solid dividend payer with dividend growth and a 50% payout ratio. 4.8% dividend yield.

20% of natural gas goes thought this company. They have good visibility to cash flow projects. They have 1-20% growth through 2024. It is a good time to build a position and get into the name. It has an attractive yield. It got to a 52 week low today and bounced off that. (Analysts’ target: $62.00).

He wouldn’t purchase this today. Between this and TransCanada Pipe (TRP-T) it represents a huge component of the energy index. You have very large portfolio managers which are hiding in these 2 securities. The company has grown very rapidly. It has a very, very complicated capital structure now, with multiple special purpose vehicles for funding different projects. The dividend has grown at a very, very rapid pace and the debt levels have grown at a very, very rapid pace. The company is beginning to disappoint investors for the first time in a long, long time. Be careful.

He holds ENF-T. It is a dividend play. It broke somewhat of a trend line and support level. It does not have a lot of upside. 4.7% dividend.

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T)? He would prefer this, the parent, over the income fund for a couple of reasons. One would be liquidity and the other would be growth. There is very little growth in an income vehicle, other than the vending down of additional assets as they are developed. In a market that is starting to grow a little faster, you don’t want to be in something that is so defensive as the income fund. He prefers growth and liquidity in this market. You still get a yield.

He likes this company and was actually considering this as a Top Pick for tonight. There could be a number of reasons, unrelated to the name, that are potentially holding back the name. People might be raising money out of this stock to fund other areas. He would definitely buy this on this pullback.

He would categorize this as a long-term hold. It is not going to be an exciting stock, but it has a nice dividend yield. Thinks it this will do fine over time, but not a real growth stock.

A very long-term Hold. There is a muddled political situation somewhat on pipelines, with what is happening in the US and the environmental protests.

(A Top Pick Jan 20/16. Up 37%.) A core position for him. Increased their dividend 15% last year and another 15% this year. Expects dividend increases of 10%-12% in the next 2-3 years. They made a big US acquisition, so they are participating more in the US infrastructure build.

Looking at this over a 25-year period, he thinks it has been one of the best stocks on the TSE. Continue sticking with this. Prefers it over Altagas (ALA-T).

This is energy, but it is the pipelines, which he thinks is here to stay. They’ve shown themselves as able to grow and pay a reasonable dividend. A good basic stock to hold in your portfolio. Not a huge amount of risk. 4.6% dividend yield.

You buy this for the dividend and the growth in the dividend. It’s one you stick in your portfolio and look at it once every year or two. 4.6% dividend yield.

A pipeline stock, and they did an acquisition that increases their presence in the US on the natural gas side. She felt their quarter was fine. Pipeline companies don’t build a pipeline unless they have very long-term commitments. The company feels that they can increase their dividend 10%-12% annually to 2024.

They have a lot of financing for their huge pipeline in years to come, which sometimes provides an opportunity. They reported last week and had a very small miss on the quarter. They have said they are going to grow the dividend 8%-10% in each of the next 5 years. Dividend yield of 4%. (Analysts’ price target is $63.)

TRP-T vs. PPL-T. PPL-T has been expensive historically because management is worthy of it and so he would go for this one. He owns EMB-T because of the advantage that whoever you have to pay bills to you should own them. They have growing dividends at 8-10%. He likes the premium management of PPL-T and it is worthy of an increased multiple.