Enbridge (ENB.TO)

Has been a tremendous creator of wealth since its issue in 1952. It is rare that you get a pullback in the stock price, but this recent one is following a 33% dividend increase this past December, and he is expecting another 15% increase this year.

Reduced his position, but is looking to buy it at $45. You may see it in the next little while given all the issues going on in Calgary. This company has great prospects and has great growth and a very sustainable dividend. Try to buy this between $45 and $50.

He would prefer TransCanada (TRP-T) on a shorter term basis. Has exited the pipeline side of things, so doesn’t own either.

This is doing an A, B, C correction and it has a ways to go down yet. If you own, don’t add to your position. If you own, just stay with it and live through this next corrective period.

They missed today, due to 9 line delays. However, their long-term guidance has not changed. Probably the only pipeline that has contracted growth for the next few years. Not expensive relative to the group. All the pipelines can continue to come down the longer oil stays lower. If this falls enough, then it is buyable.

Thinks the pipeline business is terribly attractive and this is the cream of the crop. They will continue their growth pattern well into 2020.

The whole sector took a hammering. You are looking at great growth projects. They can grow mid-teens and won’t have much exposure to the underlying commodity. They have headline risk when pipelines are talked about even though it does not change the outlook for the company.

Fundamentally he loves the pipelines. They are monopolies that just can’t be outdone. He loves the Green people that want to stop them, because it means the ones that are already there are just building up their monopolies. Sold all his holdings in July. This is a great company and well-managed. His company has this as a Sector Outperform with a $27 target on it.

10-15% dividend growth for the next 5 years. They are confident they can organically grow as well as making acquisitions. There are plenty of fees trickling up to the parent.

Secured growth projects. 51% payout ratio makes the dividend safe. If oil goes to $20, then there would be more pressure on the group. You can accumulate on bad days.

It will not be an outperformer for a while.

He cut his position in half a year ago. It is a very well run company. It is both a utility and an oil and gas company. It has not fallen as much as others. Don’t add to it.

In the past he has liked this name a lot because of the history of growing its dividend. It offers a better balance of growth than TRP-T. It is probably a core in many investor portfolios. You want to have a little bit of this for balance.

A very good entry point at this level. The stock peaked at around the $65 level, and has been hovering just above $50-$52 recently. He is very confident they will continue to achieve about a 15% annual growth in dividends.

If you are looking for a longer-term growth play with some income, then he would recommend this. Currently trading at about 9X price to cash flow on a forward basis. He would like it at about 8X, which would be in the mid to high $40 area. If you are interested in being in energy, this is probably one of the best places to be, because you have a great amount of certainty with cash flows and an excellent portfolio of assets in their pipeline. Dividend yield of 3.6%.