Stock price when the opinion was issued
This is the one he likes in the space. Part of its business is very utility-like. Steady dividend, which will rise over time. Dividend also looks attractive in the face of an economic slowdown when interest rates would fall. Hold for the long haul.
More pipeline builds would certainly be an opportunity for growth for this name, but that's not why he owns it.
Defensive assets are garnering less and less of a bid as people become more comfortable with economic risk. Used this name as a source of cash to add more beta to portfolios. Great company, but relative price performance has started to back off for the pipelines group. Pipelines carry a lot of debt, and financing costs could get more expensive if long-term yields stay high.
Over the last 2-3 years, this has had a pretty good run. Had a pullback in the last 6 months, but longer-term it’s a good opportunity. Pipelines tend to be more stable assets that benefit you when the market goes down. When we go into recession, these assets will hold up because it is a pretty steady business. A lot of institutional managers are taking there weighting down a little, so in the short term there has been some pressure for underperformance in the sector. Long-term, this is a good sector to invest in.