Enbridge (ENB.TO)

Getting very close to levels where he would consider buying. If you can get this under $50 and are a long-term holder, you are going to do well with this well managed company.

Long-term hold and is the dividend safe? Doesn’t own this because it is large and when they do have growth projects, it is harder to move the needle relative to some of the smaller companies. They do have some pretty good visible long-term growth and it is looking quite attractive here. He would suggest that you nibble away and leave yourself some room in case it does get cheaper.

Stock has pulled back by about 8%. They have very good earnings visibility on projects that they have in their $33 billion secured backlog with long-term contracts in place. With that backlog, they have now extended their 10%-12% compounded annual growth EPS out to 2018. Along with that, dividend increases, at a minimum, are going to be at the same pace.

In the future (about 2018), earnings growth will go up to 25% according to their investor day recently. It could double by 2020-21. They will probably raise the dividend by December. It will be a safe place to be.

(Top Pick Sep 23/13, Up 24.59%) Bought the IPO in 1952 and still holds it. Has been a 10% total return story for a very long time. Probably has never had the kind of growth ahead of them that they do right now.

This is going to be impacted if yields go a lot higher The move has been really big. Trading at around 7% its 2015 estimated pre-cash yield. This is in line with TransCanad Pipeline (TRP-T). However it has 11%-12% earnings growth for years out. His target is $70.

(Market Call Minute) Does not like pipelines. If you forced him to own one he would take this one. That whole group is expensive because of being a safety and low interest rate.

This is a great study of being a leader within a group, at a time when the group has been out of favour. In 2009 this was a sector that was generally unloved, but this company has been executing very well. It is a remarkably disciplined business. They look at every potential new project based on return of capital. They had a lot of long-term projects lined up to build. They continue to be that way. He thinks there is a long runway for the energy infrastructure companies, and this company will participate in that.

Preferred Series ‘F’ (Top Pick Nov 22/13, Up 4.70%) He never bought it. He is disappointed in this one. He thinks it is a hold or a buy. It has a fair reset rate.

He is starting to pick away at this, even at these levels, as they have a tremendous amount of growth CapX ahead of them, over $40 billion, which will enable them to increase their dividend and earnings by double-digit rates through to 2017. A very good, sleepy dividend payer. Thinks they will start more meaningfully to drop assets down into its MLP, which should surface some value and that will create long-term growth potential.

Yield of about 2.6%. If and when interest-rates start moving up, will investors start turning away from companies like this? If you own, hang onto it for the time being. Yield might grow by about 8%, which is not bad, but not a huge move going forward.

(Market Call Minute.) So many things going on with this company. So many projects that might, could or should happen. Prefers to get his exposure to pipelines through TransCanada (TRP-T) or Pembina (PPL-T).

Pulled back when they issued equity. Management says they grow 10-12% going forward and there will be dividend growth as well.

Terrific company. Raises its dividend every year. Growing by leaps and bounds. Doing everything right, but the valuation is quite high. He is playing the utility space through Canadian Utilities (CU-T), which has a much cheaper valuation.

A 3-year comparison chart between Enbridge and Royal (RY-T) shows Enbridge had an initial period of outperformance in early 2012, with the spread between the 2 remaining constant mid-2013. In 2014, the chart shows the spread widening. On a 1-year comparison chart, Enbridge is underperforming since March followed by a drop at the beginning of May, which he would blame on some fundamental change.