Enbridge (ENB.TO)

$US Series L and Series 1 fixed cumulative preferred shares as a way to earn US income within Canada. What happens on the dividend reset and is the dividend available for the dividend tax credit? Nice match if you’ve got US commitments or need US income. These are usually issued for 5 years at a fixed rate and at the end of that time, the company has the 1^st option to either redeem or allow it to go to the reset at a pre-established spread when they initially issued it. When it goes to reset, the investor has the option to go for the next 5 years of either fixed or floating. Not a tax expert, but he believes that because it is a Canadian company, currency doesn’t really matter, and you should be eligible for the dividend tax credit. (Check with your tax advisor.)

Doesn’t have a huge yield because the stock has done so well. It is in that group of pipelines and utilities where people tend to sell when they need money to deploy into more cyclical and economically sensitive stocks. It will continue to suffer from this. In a trading range. The issue of getting new pipelines in Canada and the US is going to overhang the industry as well. An expensive stock and she would prefer to see you in something else.

You don`t get very many buying opportunities for this one. Not a lot of companies have a growth and cash flow profile like this. Solid 3% yield and great dividend and earnings growth.

Preferred 4% shares. It depends on what else is in the portfolio. Company and dividend is safe. It could correct a little bit more but he would not sell here for reasons of risk.

Likes this one very much on a longer-term basis. Feels there is double digit dividend growth ahead of it on a 3-5 year timeframe. In the short term, the multiple is quite elevated, 22-23 times area. He would prefer it under 20X earnings.

(A Top Pick Oct 15/12. Up 11.32%.) Still likes. Pulled back with the interest-rate adjustment. Fits into his definition of yield plus growth. Thinks there is 8%-10% of earnings growth and they’ll raise the dividend over time.

Would not buy the group here. Believes Fed will tapper in September and that it is not priced into the stock here, so you will get a better entry point, at which point you should buy. Be careful about owning these stocks in this environment. Wait for clarity on tapering.

Likes this very much. The one vulnerability at this time is that the yield is 2.97%, which could suffer on fears of higher interest rates. Great, long-term story. Pipelines are growth vehicles in the long-term.

A couple of things you have to be mindful of. Chart shows a long uptrend from early 2011 but this may be breaking. Also, the chart shows 2 lower highs. He would be a little cautious and you might even look for and oversold rally to Sell on.

Well run company. Interest rate sensitive company and these stocks are starting to adjust. Could come back to $40 area. No problem big picture, though.

(Market Call Minute.) Pulled back because of the rising interest rates. There is still very good visibility in cash flow growth as well as dividend growth.

(A Top Pick Oct 1/12. Up 21.77%.) $37 billion of mostly secured growth projects over the next 4 years. Not much interest-rate sensitivity. Expect you will see more dividend growth and capital appreciation over time.

(A Top Pick June 27/12. Up 18.11%.) He added to his holdings during the pullback of the interest sensitives. Extremely attractive. Have $26 billion of committed projects over the next 5 years. Great growth.

Which ratio is better to assess the value: Price-Earning or Price-Cash Flow? What is a good entry price for this stock? Price to Earnings is better than Price to Cash Flow. He feels it is good value when it gets to 20X or below on a PE basis. They are very susceptible to multiple expansion if long-term interest rates head up significantly from here. (Sold down his holdings in the last 6 months out of fear of the impact of higher longer-term interest rates might have on the valuations.)

(A Top Pick July 7/12. Up 12.63%.) Still likes. Have lots of projects in their pipeline that is going to ensure cash flow growth of 10%-12% and there is evidence that this will continue that same pace if not a little bit more until 2015-2016 area. Still a Buy.