Enbridge (ENB.TO)

The market has been too hard on them. Large pipelines in the US have come down a lot. There is a general concern their suppliers of oil might go bankrupt. There is a concern that they can’t fund projects. He disagrees with all of that. They have a deep line of sight into where their business comes from. You look at free cash flow growth and the yield on that is about 10% so they can grow the dividend in the low to mid-teens.

Pipelines as a group have been punished quite severely over the last few months with the slash in energy prices. Feels you could start initiating a position. The dividend is quite safe. They have projects in place for the next few years that is going to give them cash flow growth, and they have indicated they intend to grow their dividends at the same pace. She is expecting dividend increases of 12%-15% for the next few years.

The share price has been really beaten up over the last two weeks. It has been painted by the brush that has affected anything in the energy space. This is one of the few paces he has exposure in the space. It is the least risky. The barrier to entry is quite high so they have competitive advantage. You are being paid to be here.

Has always admired management, but you are paying quite a premium for this company. He would be loath to sell, but wouldn’t be buying at current levels.

A dividend entity that is large and going to be around for a long time. Great management team. Has been disproportionately hurt along with the other pipelines and energy companies. There is good value here. If oil prices keep going down the way they are, this is still a buy. Nice dividend yield. Have a lot of debt, but pipeline companies do have a lot of debt. If they had to get financing, they would have no problem.

It is a tolling business. It has been punished unfairly. This is true of a number of companies in the mid-stream business. The infrastructure businesses are not bad at all. They have steady income and are hard to complete with. This is a good time to go bottom fishing.

He just added to it a couple of weeks ago. The whole sector has been hit. ENB-T is one of the great asset managers out there. They are the toll booth of the North American economy.

Oil Prices and Pipelines. He owns ENB-T. He would go for it for the US exposure. Best exposure going forward. It will have dividend growth. You need this to lean into higher rates.

This has been one of those great names since the mid-1950s when they first built a pipeline in Canada. Has a wonderful disciplined management team with good long-term growth potential. It just happens to be in the wrong sector. Dividend yield of 4.7%.

Big pipeline company and owns things like Enbridge Gas. Did really well, along with all the utility and pipeline stocks when people were looking for yield. As people recently started getting worried that interest rates in the US might start going up along with bond yields, all interest sensitive stocks came out. Part of this company’s drop has to do with projects they wanted to do. Getting interesting at this level, and he is actively looking at adding this.

It had an uptrend from ’09 to last summer. We had an uptrend and then it broke down. He thinks now it will be dead money, but you won’t get hurt. There is a little increase in volume. If we get above $46 with volume that is positive.

Just raised their dividend by 14%. Has relatively good growth. Remember that this is a provider of services to the energy industry; they don’t suffer directly from the commodity itself. They get a fee for service for tolling hydrocarbons through their system. It’s a good company, but there is just not as much growth as there might be in a healthcare or technology stock. Good yield play and shows good growth. Dividend yield of 4.8%.

Likes this and is putting new money in for new accounts. Has been a great stock longer-term. They have some major projects on the books of about $21 billion, with about all but $5 billion being internally funded without having to go to the market. They are talking about a 14% annual average growth rate out to 2018. If you are looking out 2-4 years, this is a great buy. Dividend yield of 5.16%.

Decline in share price picked up speed after Kinder Morgan (KMI-N) cut their dividend. A lot of institutional money managers are starting to question if Enbridge will be cutting their dividend. He likes this company and continues to hold it. Thinks the dividend is safe.

A wonderful company, great management and a good solid dividend. Sold his holdings because he thought that coming into the summer, pension funds who were buying it for the dividend, would be starting to sell. With the correction that we have had in a lot of the names, he is starting to look at coming back in.