Enbridge (ENB.TO)

Yes, it is. She owns it for attractive yield of about 7.5%. Backlog of projects supports the dividend, company feels it can grow by 3-5% annually for the foreseeable future. Diversifying end market by purchasing nat gas utilities. Rising interest rates and equity issue have held stock back. Trans Mountain has not affected takeaway capacity.

Volatility in the underlying commodity shouldn't affect pipelines that much, but it does impact sentiment.

Am under-performer, but they continued to build the business. They bought 3 US gas distributors and increased shipping on the Gulf coast. The street has ignored this though. Trades at a 16x PE and pays a 7.3% dividend, lower than peers. 

Dividend ~7% is strong and very good for long term investors. Demand for power continues to rise. Capital expansion will be good for cash flow for years. Dividend continues to grow. Recent M & A a little concerning, but overall the business is headed in a positive direction. Assets very hard to replicate. 

He's a Base Breakout Buyer. Usually that's very bullish. He bought this on the breakout. First resistance is around $55, and then around $60. Nice dividend, probably some upside. Doesn't see big downside. 

See his blog at valuetrend.ca for the argument on why fossil fuels are going to go up.

Sector has been tough the last few years. Would rather invest in Pembina Pipeline. High capital costs with large amounts of debt. Well managed company, but not investing at this time. Better options out there for investors. 

The longer the bond term, the longer the duration, and the more exposure to interest rates moving up and down. A longer-term bond will likely outperform in a falling rate environment. Not averse to this plan, but better opportunities even at 3.5-4% mid-term bonds. 

You can also get 6-7% on some equities, but it does depend on your time horizon and when you might need the money. If your timeline is 3+ years, a company like ENB or POW would be a better place.

Dividend very safe. Likes management. Price of nat gas doesn't really matter, it's more about aggregate demand. Renewables too. Population growth story for Canada and US. Nat gas is reasonably clean burning, so demand will continue.

These stocks should catch a bid if market thinks interest rate volatility will come down.

It provides 20% of the US' natural gas and has a huge market share here. Pays a 7.4% dividend. Collect that as you wait for rates to decline. His biggest holding.

He disagrees with some analysts who say that ENB lack cash flows to service their debt. They have the cash flow, and the CEO is good.

Stock price hampered by interest rate environment plus sentiment towards energy and pipelines. Very inexpensive. High dividend yield approaching 8%, with only a 66% payout ratio. Reasonable growth profile. Would buy today.

Likes it a lot can be volatile due to interest rates. ENB and TRP are the pipeline names in Canada. ENB has a major one that flows in the US. Pipelines will never go away, Pays nearly an 8% dividend that is safe and that they annually increase. Are well-capitalized.

A 3.14% spread over the government of Canada. Unlikely to cut their high dividend which you can collect safely.

Debt-driven business, so interest rates hurt. Great assets, not easily replaced. Future growth will be in the US. 

Look at their payout ratio and cash flow. ENB is making a big bet on natural gas in the US, which is the right move. The US needs nat gas production. But the dividend is very high and the balance sheet weak. He hopes interest rates come down. If you own this, you will do okay and collect the dividend, but it's not for him as a long-term investor.

We think ENB remains a BUY for income. The Permian Basin and pipeline JV is fairly big, with ENB committing $350M plus $150M for a 19% interest in the JV. While big, keep in mind ENB's market value is $101B, so it may not be a huge financial impact right away. But certainly these JVs are positive developments to provide longer term revenue and cash flow visibility and growth. 
Unlock Premium - Try 5i Free