Enbridge (ENB.TO)

With rates moving lower, we should be looking at utilities in general. In terms of LNG demand strengthening over time, he likes names like ENB and TRP. They're large, with sustainable dividend growth.

One of the largest holdings in his income growth fund. Nice fat yield of about 7.5%, its policy should allow increases of 2-3% a year. Safe. If interest rates come down, yield will go down but stock price will increase. Stock's down today, likely due to being ex-dividend.

In the space, he owns ENB and PPL. Both have more robust plans for growth than TRP.  PPL is above his buy price right now. ENB is very inexpensive today, so that's his preference.

It is one of their two core pipeline holdings. The other is Pembina. Pipelines in Canada are basically an oligarchy. Increased immigration should increase its business in Ontario. It has exposure to commodity prices but without the big swings of producers.

Uniquely in between both pipelines and utilities. Likes it. Pre-eminent Canadian entity in the midstream space. Half of it is a high-quality utility. Leverage is a bit high, but you can look past that because the regulated utility assets it has are very high quality in Ontario. What it bought in the US is high quality as well.

It's his top quasi-utility/quasi-midstream. He'd be open to adding today.

Price struggles are due to high leverage, and that execution still has to be proven on the US acquisitions. US rate cuts would also be beneficial.

It's had challenges with the main line and a line 5 reversal. It's a core holding and likes the dividend, which is safe. Likes management. Will hold it long term.

His clients looking for income own shares in PPL and KEY. Doesn't love buying a company just for the yield. He wants to dig deep and figure out the fundamentals, growth prospects, balance sheet status, and payout ratio. Those are things you need to be very careful of when you're buying companies just for income.

If rates continue to fall, ENB is undervalued. And, yes, it could go up to $60-70. But he wants to own companies where he can get double-digit earnings growth over a 5-year period, and a chance to doube his money. He doesn't see that with ENB.

But if you're OK getting a nice yield without the volatility of a growth name, then this is a perfect fit for your portfolio.

Doesn't qualify as part of her sustainability universe, due to exposure to natural gas. Will benefit from increased energy needs generally in North America. Yield is 7.5%, which will be even more attractive when/if the BOC cuts rates.

Buy for the dividend only. There is little downside and little upside but sell if it goes below $46.
The caller also asked about the S&P 500. He is not worried about a correction but be careful- it is over-extended.

Struggled lately, surprising for an interest-sensitive stock given the interest rate cut in Canada. Range-bound long term between $42.50-52.50. Trend support is probably around $46. Keep an eye to see if we get a higher low.

Likes it for income, paying above 7% dividends. Very defensive, a fine business model. With their strong cash flow, they bought some good nat gas companies.

Decent growth profile, 7.5% dividend, and the Canadian dividend tax credit. Valuation has been fair. Trading at mid-teen PEs, contrasted to TRP with a 12.5x valuation.

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.