Enbridge (ENB.TO)

If you have owned this for quite a while, you’ve had a nice big juicy profit and if you are nervous about markets, you take some profits. There is nothing fundamentally wrong; it is just soft from general market selling purposes. At this price, it looks pretty good.

The problem is with the expansion and the ongoing overhang with all the environmental issues of all these pipelines. They need new projects, new exploration and more capacity. The story was working out incredibly well for the last 10 years, and then all of a sudden it has derailed a little. An attractive name, but be cautious. He would have no hesitation in buying it right now, either in a conservative portfolio or even in a growth portfolio.

(A Top Pick Aug 12/14. Up 5.21%.) Has held up very well in the context of the volatility we have seen with oil prices in the energy sector. He still likes this name. They are going to drop down additional assets to the Enbridge Income Fund (ENF-T). For any investor that wants to get exposure to the energy sector, who can’t stomach the volatility, this is a great way to do it.

This is how she would dip her toes into the oil/gas sector. Producers with balance sheets that are a little distressed are going to be selling midstream assets, and companies like this will be able to take advantage of it.

When the energy picture brightens, he would be a further buyer of this.

One if his favourite companies. There are a lot of catalysts. They dropped down key assets to a sub-company. They have more growth projects ahead of them than ever in history. The prospects are very bright. He would buy at these levels.

This has been one of the great Canadian companies for the last 50-60 years. Just came out with numbers last night and they are exceptional. One of those names that you just buy and keep and watch the dividend grow because they can grow that dividend with expansion projects. A wonderfully well-run company that has a great track record.

His favourite pipeline. It is going to have the best growth in the next 6-8 years, without any further pipeline approval. This is going to show 10%-12% earnings growth, and have pledged to grow the dividend by that amount. If you are going to hold one of these and collect your dividends, this is the one he would pick.

It is a solid holding. It is amazingly well managed. They have many opportunities in front of them. They have been accelerating the dividend payouts. Longer term he really likes the growth rate of the company. He likes the drop down deals.

(A Top Pick July 8/14. Up 18.67%.) The projects they have in place are all long-term secure contracts with very good visibility through 2018. Still likes.

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T)? Both of these are dividend payers and energy infrastructure companies, so they are not taking real commodity risks. If he had to choose, he would prefer this one simply because it has such a bigger market cap and is more of a “go to” name for investors, both domestically and globally. Probably the best run pipeline company in the world.

His model price is $36.91, a -35%. You may be buying this for the dividend, but your capital is at risk. If we were to have another deflationary spike and the Fed does not move, and the world goes back into this slow growth funk, this stock could easily go up to $68.

The primary reason it has come back from its high of $65 is because of declining crude oil prices and the potential impact it will have on these infrastructure names. The earnings and cash flow visibility is very high for the next 4-5 years, based on what they have in their backlog. A lot of the projects are all “cost of service”, and there is no commodity price sensitivity. 3.3% dividend yield.

In January 2014, he had only 7% exposure to commodities, basically Potash (POT-T) and this company. Continues to own this one which is a toll taker and one that belongs in the portfolio. Dividend yield of 3.2%.

Wouldn’t worry about the pullback in the stock, it is actually a buying opportunity. There is not a lot being valued on the Northern Gateway project, and that is going to be a very, very good space for them to be involved in. This company is not going to be too dependent on whether oil prices are high or low at this point. An excellent name.