Enbridge Income Fund Holdings (ENF.TO)

The income fund has a fair bit of growth opportunity because the parent is about to drop down about $16 billion worth of assets to them. The dividend is anticipated to grow 10 or 12%. The parent has a bigger growth profile, however.

They essentially wait for Enbridge (ENB-T) to build out pipelines and then swap them into their Hold Cos. He likes the recurring revenue stream. Recently issued $1 billion of 30 year debt to acquire another pipeline from Enbridge. There is some talk about buying the entire Canadian liquid pipeline business from Enbridge as well. The biggest risk is that it will be very sensitive to interest rates, but he doesn’t see them going up for a while. If you Buy keep a close eye on it.

They have 15 billion worth of secured contracts coming through their pipe over the next 5 years. Potential dividend increases for 5 years could be 10% per year.

Really likes management and feels safe with the dividend payment. Within the solid blue-chip payers, this is one of those that you should Hold and use other sectors to add if you get any kind of a pullback.

Energy infrastructure space which she likes. Pipeline and mid-stream companies. If you are an older investor it is a great one for you. Stable income stream. ENB-T is good too, but takes on more development and cap x risk.

Just acquired $1.7 billion from Enbridge (ENB-T), so they are going to have to raise money. His guess is that there will be some common and preferred shares coming out. One of the great things for a company like this is that the cost of making acquisitions is at an all-time low, because there is so much money available from institutional investors who are seeking yield. Feels the deal is probably constructive for holders. A solid income producer.

The whole Enbridge complex is a very, very sophisticated set of financial engineering with drop-down companies, where they are able to sell things into these partnerships, Get investors to finance that part of the business, and in some cases, the company takes back preferred shares with the hope of diluting themselves down over time. One of the big aspects they have are the big wind farms. He worries about government contracts and their sustainability. He would be very, very cautious.

Earnings were in line with expectations. A slow and steady stock. She owns their parent Enbridge (ENB-T) instead. A lot of their assets are more US focused. For a retail investor, this is a nice safe place and gives you a nice yield.

Enbridge (ENB-T) or Enbridge Income Fund (ENF-T) or both? He would be inclined to take this one, as opposed to the trust, because he would want to have growth going forward. For people who are living off their income, higher yields are attractive but if we get any inflation in the system it is great to have the growth to protect you. From a capital return perspective, if you have growth with a yield, you will outperform the yield itself.

Well-positioned as a drop-down vehicle for Enbridge (ENB-T), providing a finance vehicle. For fund holders, it provides a continuing growing growth cash flow stream. This fund is well-positioned. One caveat is that they own about 50% of the Alliance Pipeline and there is little bit of recontracting risk coming up in 2015. Feels they have enough of their assets that they can probably work through that. Yield of 5.5%.

This is a nice steady payer if he is setting up a brand-new portfolio for clients. He would definitely consider it as part of a diversified pool of income. It is rebounding on the price and the entry point is pretty good right now. 5.8% yield. Conservative income generator.

Good company. A stable company in that it is a slower growth, slower dividend increaser and he sees a lot better growth in other companies. If you are just looking for stable income and not a lot of volatility, this one will do pretty well for you. He prefers something with more growth potential.

5.7% yield. She owns the parent. It is a yield play and she prefers the parent because of growth prospects.

He owns the holding company. Thinks ultimately the growth in earnings in ENB-T is worth the lower yield. 5.6% yield but less capital appreciation.

Good company, good cash flow. Challenges in the short term. Cash flow off the pipeline. As a play, they all got pulled back. There could be some weakness short term. Start looking at it now.