Enbridge (ENB.TO)

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.

Likes this. It has the best growth of the pipelines going forward. You need some government cooperation to get some of this new stuff built, but they have something like a 5-7 year time horizon for most of their new projects. There will be some disappointments and it will get stretched a little. They are looking for 8%-10% earnings growth for each of the next 5 years, and 8%-10% dividend growth. A little expensive on a PE basis, but in the low $50, it is a Buy. 4% dividend yield.

He likes it at these levels as it was painted with the same brush as other energy names. It was mispriced. It is up about 15% from January, but off of its highs. You have the opportunity to collect that dividend and some share price appreciations. Don’t be in a rush to sell it.

This is a name he likes. Had held this for a long time and was one of the last names he gave up in 2014. It does so well in so many different environments in the energy cycle. It has a $72 target, which is a nice big up move. Above its 50 day moving average, which is really positive. Has started to turn up against the S&P. Dividend yield of 4%.