Inter Pipeline (IPL.TO)

Has just doubled his position in this company. The contracts they have are extraordinary. The company can grow incrementally with this fair bit of capital. They have lots of spare capacity. He is taking a 10 year view on this and thinks he can compound at 8%. Dividend of 6.75%.

The stock has fallen enough that valuation has gotten better, but it is one of those stocks that is perceived as a very safe, defensive security. A lot of the fund flow out of cyclicals has found its way into stocks like this. Price momentum is poor. He has a small position in the fund that looks for sustainable yield. Dividend yield of 6.6% which is sustainable.

He prefers ENB-T. The group looks better than it has for quite a while and you can hold them now.

Just had a record quarter and increased their dividend. Some of these pipeline stocks are looking pretty attractive. We are going to see another wave of pretty significant dividend increases come through at year-end. A well-run company. They have larger oil sands exposure, so people are worried about long-term oil sands volume, but that is on their future growth and doesn’t impact current cash flow very much. At these levels this looks pretty attractive.

This is tied to Canadian oil sands production. Across the energy infrastructure sector, a lot of stocks are down about 30% year-over-year. It is largely a function of where the growth comes from beyond 2018. The multiples are now down to 11-12 times because commodity prices have declined. This is a good entry point for some of these names. His favourite would be Keyera (KEY-T) followed by Altagas (ALA-T).

Anything related to energy right now is under the gun and will be for a while. He thinks the growth of oil sands production will continue, and the only question is how is a getting to market, rail or pipeline? He is not buying for new clients. The dividend is safe.

This has not been a great performer and he reduced his positions. Concerned about their long-term prospects. The oil sands look like an area that was going to be a gold mine for this company for decades, but it sure doesn’t look the same way now that it did a couple of years ago.

He owns a lot of other pipeline companies and can’t own them all. This one is well managed. They have pipe in the ground more than they need. It will be filled eventually. The payout is about what their cash flow is, but he believes they will maintain their dividend.

Rising interest rates will hurt this company because it won’t be as competitive an investment. A lot of investors are hiding out in it. If and when interest rates start to rise, what happens when they have to refinance their debt.

The payout ratio is creeping up. New projects are hard to come up for them. It will go lower, though.

At these levels, this represents good value and a good level to be adding to it. The dividend is safe.

She has owned it for a long time. She likes where they are situated. They are coming off a large capital spending program and so we should see a bump in cash flow. She does not see them increasing their dividend this year, however. She is confident in their cash flow for a few years, but beyond that you may not see more projects because they depend on infrastructure.

Sold his holdings some time ago, with the idea that the income stocks were getting a little bit ahead of themselves. With a pullback now, you could certainly look at this and pick it up, especially if you need a yield name in your portfolio. Dividend yield of 5.2%.

The dividend is very sustainable. They still have some growth to come. There are a couple of new pipelines coming on stream within the oil sands area that is going to increase their capacity a little. Regardless of the price, oil is going to flow through those pipelines, and theirs are very well positioned, with a little bit of a growth kicker put in as well. Dividend yield of 5.5%.

This is doing everything that it should, basically building up its inventory, long-term contracts and building up their storage business in Europe. Long-term this is terrific. The reason for its decline basically has to do with energy. When we become a little more disposed to energy, this is a Buy.