Enbridge Income Fund Holdings (ENF.TO)

COMMENT

He owns the parent Enbridge (ENB-T) instead. This one is an income fund, giving a higher yield, but less growth. Enbridge (ENB-T) basically drops down mature assets into this fund and LOPs. It’s a financing tool. Dividend yield is north of 7%, and is sustainable.

COMMENT

Has been in a clear downtrend for quite a while, and is probably not acting as good as the rest of the space. In the last month and a half, there has been a tentative basing pattern. This means there are buyers coming in at these levels. If there is a break around $28-$29, that would indicate there is more downside to come. If it holds in here, you are collecting your dividend and it is probably a pretty good risk/reward. Dividend yield of almost 7%.

HOLD

For an income investor he continues to hold, but on the equity side the trend has been breaking down and he will be selling soon. Not a great stock for growth, but if you like the 4% dividend you should continue to hold.

COMMENT

A yield generating stock, so a lot of investors have already bought this. Chart is showing lower lows and lower highs. Be disciplined and set a price where you will not allow it to go lower before getting out. Don’t be tempted by the yield.

BUY

This got pounded in the last few days. Moody's downgraded them a couple of weeks ago on line 3 execution risks. Very cheap. Trading at 11X. The dividend is safe-ish. He is modelling a 6% compounded growth rate on EPS over the next couple of years. One of the risks is what happens in Minnesota with the Minnesota regulator, but construction has already begun in Canada and Wisconsin. These pipelines are necessary. Probably a buying opportunity at these levels.

BUY

It is one of the pipes. This is one with a higher payout. He does not have any problem but just does not own the pipes. It is okay to own it if the dividend is covered.

SELL ON STRENGTH

Hold or Sell?He doesn’t follow this closely, but the chart shows that $25 is a very important support. It also shows a bit of a rounded top. Use any small rally to sell your position. 6.6% dividend yield.

BUY

It is part of a broader umbrella used as a vehicle for asset ‘drop down’ to enjoy a lower tax rate. It has done fairly well over the long haul but sold off as of late. He plays pipelines thought the parent, however. But he has no qualms with this one.

HOLD

This contains Enbridge’s (ENB-T) mainline assets. There is probably less growth than there is in Enbridge the parent, but the yield is higher. Thinks the dividend is safe, but there is probably less growth. Dividend yield of 6.4%.

HOLD

In the beginning of the year there was an expectation that interest rates would go up in the US and not in Canada, but then Canada surprised. Dividend stocks have been slightly underperforming the market. The effect from the rate increases is marginal.

COMMENT

Enbridge (ENB-T) or Enbridge Income Fund Holdings (ENF-T)? He added Enbridge about 2 years ago. He loves the boldness of the Spectra Energy deal. It is a really well run company. He prefers it over this one.

PAST TOP PICK

This company was never shown as a Top Pick for Richard, so I don’t know where BNN’s information came from. We had Royal Bank, which they didn’t comment on. - Bill)

BUY

It has a higher dividend than Enbridge and it is safe. Growth projections are slower than the parent.

COMMENT

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T)? He prefers to be in Enbridge. Dividend yield of 6.3%.

PAST TOP PICK

(A Top Pick July 28/16. Up 5.42%.) He bought this because it had a nice generous yield that was sustainable. It had very compelling growth as well as a compelling valuation relative to its peers. Trading at a 14 multiple. The only thing that can hurt you here are possible pipeline delays. Still likes.

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