Enbridge (ENB.TO)

They suddenly have come back into major league favour after being in the penalty shed for 18 months. At the beginning of this year, things started to look a little better for them. This has always been a well-managed company and is finally bearing the fruits of their labour.

There have just been some construction halts on the Dakota pipeline. Thinks it is going to get built, but the risks have gone up. They just did a major deal, which in the near term is dilutive, so he just lowered his 2017-2018 by about 2%. He models 10% EPS growth for the next couple of years. Now that they have just combined with Spectra, they have better growth beyond that. This also helps their balance sheet and addresses funding needs. This is expensive like all yield names, trading at 24X versus its 5-year average of around 26X. It is still cheaper relative to where it has been. This is one you want to continue to Hold, or buy on a pullback.

He owns Spectra. He is receiving shares for that. He thinks pipelines are a great business. He will hang on to the shares. They have great assets. It is a tough business to build new pipelines. These are great income and cash generating businesses. This is a monster of a player in North America.

Fortis (FTS-T) versus Enbridge (ENB-T) versus Telus (T-T)? He has just come out with a new portfolio which has 13 infrastructure oriented stocks. All 3 of these are in that portfolio. The major reason is because of the predictability of dividends long-term and excellent management. He really likes the Spectra merger, which extends out the time they can forecast their dividend growth, which will be 17% next year and 10%-12% per year to 2024.

He really likes the Spectra acquisition. The only potential negative is the earnings multiple which is in the almost mid-20s now, so there are some interest rate risks. If you Buy it and tuck it away, you see the dividend grow to the point where it will double in 7-8 years. There is a strong emphasis on renewables, they are the 2^nd largest wind producer in Canada. Have done a large joint venture with a French organization.

A good, long term hold. You can get fussy with valuation and try to get cute, but it is a name you just want to Buy and tuck away for 5-10 years. The assets are very difficult to replicate. The Specter deal helps them securing mid-single digit cash flow and dividend growth for the foreseeable future.

He is not short. There has been a chase for yield for 5 years. It is incredibly expensive where there is no organic growth at all. Their debt is getting up there.

Inter-pipeline (IPL-T) or Enbridge (ENB-T)? Their acquisition of Spectra gives them more visibility on dividend increases through to 2024. Dividend yield of 3.7%.

He likes what they are doing. They are getting into different asset groups and going down to the US. It is easier to buy assets there. He thinks their recent acquisition was good. The stock has moved too quickly here. He would buy it again in the low $50s.

This was a huge newsmaker last week with the purchase of Spectra Energy, followed by a little bit of negative news with the Dakota access pipeline. It had a correction and then zoomed up in the last little while. This assured the street that it was a company that was interested in growing, and they are going to be able to continue to pay that dividend. If this is only a 2.5%-3% position in your portfolio, he would be happy to Hold, and perhaps bolster up a little more.

This has just been hitting 52 week highs. The deal they just struck looks pretty good. Solid assets. Good management. A great buy for the long-term and he wouldn’t worry about a pullback. Dividend yield of 3.7%.

Long term they have been one of the greatest of all time. It still looks good, but other utilities have higher rates of return. Don’t sell because of the recent run up.

He really likes the Spectra acquisition. A great footprint and it complements well with what they already have. The most important aspect is that it gives this company some visibility on growth, post 20019, which was a big hole in their capital plan. This offers them the opportunity to tell investors that they can grow dividends 10%-12% through 2024. A great stock to own, but wait for a little bit and maybe the stock will settle down in the next few days.

This is the one stock he would be deploying capital to. The biggest network of natural gas infrastructure this country has. 2 million users. They have very well established projects. Despite the strife going on for Energy East, these are existing pipelines. Has a tremendous track record of being able to deliver value to shareholders through growing dividends. Disciplined in their management of capital.

Pipelines ship oil at $40 or $80 per barrel. As oil sold off you noticed a pullback. You have to look at it in conjunction with what is in your portfolio. No growth expected. It is a mature name. You are there for the yield.