Enbridge (ENB.TO)

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.

They diversified from pipelines into power assets – wind and solar. He prefers TRP-T for pipelines, who have growth opportunities right here, right now. TRP-T is cheaper.

(Market Call Minute.) A really overvalued company and a space where the actual volume product moving through their pipe is declining. They have an enormous amount of debt.

Technically this is looking pretty good. It has been in an upward trend for the last 6 months or so, and seems to be forming a trading range now. If it moves above its recent high, then you probably have a continuation. Seasonally, oil stocks tend to do okay from around the end of July right through until about the middle of September. If you start to see momentum and relative strength starting to turn negative, take your profits.

(Market Call Minute.) He would be getting a little concerned based on valuation.

An interest sensitive stock, and he would be a little wary of some of the interest sensitives that have run so hard. Would be more inclined to play the Enbridge Income Fund (ENF-T). It is a bit of a higher yield, slower growth and the valuation is not as extended.

She owns a tiny amount. A terrific company and is well-managed, but it is pricey. A blue-chip company and one of those things that you can go to sleep with.

He is discouraged by the Canadian government. Not sure we are going to ever build another pipeline in Canada. The obstacles being put in place are so high and wide, and the time process is so long and so expensive. He sees this as a detriment to the big companies.

(Market Call Minute.) This is looking a little expensive. Look at the Enbridge Income Fund (ENF-T) instead, which on a yield basis looks a little more interesting.

All the utilities and interest sensitive type stocks like this have been acting well, because investors have been looking for yield. This company is going to be raising its dividend quite sharply for a number of years, which he likes. They have some projects coming on. Some will make it politically and economically, some won’t, but he still likes the outlook for the next 3-5 years. The biggest risk is interest rates. If they start to go up again, all the pipelines, utilities and telco stocks will be at risk, as money will flow out of them and into fixed income.

Enbridge (ENB-T) or Suncor (SU-T) for a TFSA? With registered money, you put dividend yielders in, and this company is a classic example of a dividend grower. The money is compounding there with no tax on it until you take it out. He would stick with Enbridge.

This is a utility. A big company with major pipelines that are going to be full for years and years to come. The real problems occur in areas where you want to expand. Thinks the Northern Gateway is never going to fly, which was one of their favourite projects. Dividend yield of 4%.

Likes this and thinks it makes a lot of sense. The midstream names are a bit of a conservative way to play into the energy recovery if you think that is happening. He prefers something like Pembina Pipeline (PPL-T), which has a bit of a pickup in dividend and pays closer to 5%. Likes both names.