Enbridge (ENB.TO)

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. 
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A tough one for him, but fundamentals remain sound, despite recent concerns over their debt. Look through that. Acquisition in the U.S. will be accretive. Dividend is attractive. Pays a decent return and will hold on.

Yes. He certainly wouldn't buy them all, but likes Telus and ENB a lot. As rates come down, the higher-yielding stocks that are still beaten up should start to stage a nice rally between now and the end of the year.

Has pushed above its 200-day moving average, unlike other dividend payers like Telus. Pays a 7.5% dividend and they historical increase it. Commodity prices are improving or not worsening. Dip your toe into this.

It has a high yield and steady 3% growth in free cash flow which gives it a 10% return year over year. A rate cut could take it to over $50. It is the top holding of their firm.

Equity issue of over $4B to fund acquisitions will be dilutive until operations come online and start producing. Overhang on stock price. Rising interest rates hurt interest-sensitives' debt carrying costs, but less than 10% of debt is subject to floating rates. Trans Mountain perceived as an overhang, but delays have actually topped up ENB takeaway capacity.

Interest-sensitive pipelines have all had a rough time. ENB had to issue equity and debt to finance an acquisition, caused stock to collapse, an opportunity to buy.

These companies have great assets that aren't going away. CEOs of these companies feel it's difficult to do business in Canada. ENB, for example, is dedicating all its capital to the US. That's going to be the strategy if these companies want to grow. 

Good time to buy. Though rates aren't going down as quickly as people think, they're not going up from here. That's the value proposition. Over the next 6-9 months or so, rates will come down at the short end and the yield curve will look differently. These companies will benefit from that.

After years of going nowhere, energy demand is rising 5% annually thank to data centres that generative AI rely on. We need natural gas to meet this demand. ENG is the Canadian natural gas kingpin that moves 20% of the nat gas in the US and ther 30% produced in North America. ENB pays a 7.7% dividend yield. This is ENB's moment.