Enbridge (ENB.TO)

(Top Pick Oct 4/12, Up 9.81%) Does not give you very many buying opportunities. Stock continues to chug along. Good entry point. They can talk comfortably at investor days about what they are doing for the next 5 to 10 years because they have long term contracts. They have a simple model and do their business incredible well. Can grow dividend 10% a year. They can grow into their price. You are buying it on sale.

Enbridge (ENB-T) or Fortis (FTS-T)? There is no growth in Fortis from an earnings basis. The last 2 acquisitions they did were not accretive at all. Feels that this one has more earnings growth. Big financing obligations over time. An increasingly complicated structure because of all the drop-down entities that they do. If he had to pick one of the 2, it would be this.

Great company and shares have traded off significantly. If you currently own, he isn’t sure you should Sell right now. Likes the growth aspects associated with them. About $26 billion of growth projects over the next 4-6 years that they can tap into. Pretty stable, steady dividend.

Likes it. One of the leaders in terms of new projects. A large part has already been funded. 3% yield and 19% gain.

(A Top Pick October 1/12. Up 13.4%.) Looking for 15% share growth over the next 3 years. Trading at 19X, so given that growth visibility and the rising dividend, it is a pretty good place to be parking capital given the pullback it has had.

(A Top Pick August 27/12. Down 3.79%.) 4% Series H. All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further. Still likes this one.

$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.