Enbridge (ENB.TO)

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%.

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.