Enbridge Income Fund Holdings (ENF.TO)

We have entered into an oil bear market. Pipeline stocks had done pretty well and for the last 2 years they’ve been underperforming. This has a dividend yield of 6.4%, and believes they have the ability to increase that dividend a little, gradually. Infrastructure is still needed if Canada is going to move its oil. The main line, which runs from the oil fields to the US border, is being replaced which will give this company a pretty good boost as they get to mark up their capital base to the cost of replacing that pipeline. Has a nice yield and there is probably a little increase coming. 6.35% dividend yield.

Enbridge (ENB-T) itself, over the last few years, has done a lot to reconstitute itself. In that restructuring, there are some fairly strong components. From an income point of view, this one is a fairly safe, predictable entity. He owns a little bit of Enbridge, but would not have a problem owning this one. Dividend yield of 6.4%.

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T)? He would prefer the parent, over this for a couple of reasons, liquidity and growth. There is very little growth other than the vending down of additional assets as they are developed. In a market that is starting to grow a little faster, you don’t want to be in something that is so defensive as an income fund. He prefers growth and liquidity in this market.

Algonquin Power (AQN-T), AT&T (T-N) or Enbridge (ENF-T)? Of these 3, he would certainly go with AT&T. It is part of the S&P 500, which he is very bullish on, as well as the US$.

This has been under some pressure lately, and has established a downward trend. It is underperforming the market. Momentum indicators are also negative. Because it is a utility oriented security, it tends to do quite well in the summer normally. You can expect it to have a limited downside risk, but you don’t want to own them because of that, you want to own them because they are going higher. Wait until you see technical signs that it is bottoming.

This has a lot of the mature assets in Western Canada that was spun down to this income fund from Enbridge (ENB-T). There is much slower growth in this one. It may be going down because of some concerns that the parent may have to raise equity and may drop down assets to the income fund. They are both very good companies. There is a little concern about US interest rates going up in June. He would be buying this if it went down.

He prefers this one over ENB-T. This is his defensive pick. It has a 6.2% dividend that will increase 10% per year. This is more of an owner of assets. Less than 1% of their income stream is susceptible to interest rate, commodity or currency risk. (Analysts’ target: $36).

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T) for dividend income? Enbridge is the company that is building the pipeline and the energy services, etc. Once that is completed, it is largely sold to this fund. Pays about a 6.1% dividend yield. The stock is about 8%-10% off its high, and is a reasonable valuation. They are expecting about $9 billion of additional products in the next 3 years and dividend hikes of about 10% a year in the next 2-3 years.

She owns Enbridge (ENB-T) which has better growth prospects. This one owns the Canadian mainline pipeline. Its dividend is sustainable. Enbridge (ENB-T) acquired Spectra last year which really increases their presence in the US, as well as diversifying them out of just crude oil and into natural gas. If you are more interested in pure yield, than ENF is maybe what you would rather have, but Enbridge, with a yield of 4%, will be increasing for a number of years, and has better cash flow growth. Dividend yield of 6.1%.

He prefers the income fund. They are tremendously good at return on equity and capital. He does not know of anything specific about why they are down today. It may be the record date being 3 days before today. You would not get the dividend if you bought it today. Today they decided to sell half a million worth of assets to the income fund.

He likes the Enbridge companies. This one has been very stable and is a very good company, and should continue to be so. 6% dividend yield.

She owns ENB-T because it is the bigger company. She likes that company and the Spectra acquisition. There is more growth in ENB-T. ENF-T pays a higher yield. When the Spectra deal closes they are bumping up the dividend.

Enbridge Income Fund (ENF-T) or Inter Pipeline (IPL-T)? These are not similar companies, but have similar stories. They are both slower growth companies with a slower dividend growth, but with a higher yield and more stability. It just a matter of how much you want to own of them in your portfolio and what your goal is. Ultimately both companies are solid.

(Top Pick Jan 26/16, Up 36.76%) You just had to have it. It has done very well. It is trading at its net worth value so does not offer any more.

(A Top Pick Jan 26/16. Up 30.95%.) This stock is now getting to the point where it is now starting to get on the expensive side. Dividend yield of 5.4%.