TC Energy (TRP.TO)

Their struggles trace back to the cancellation of the Keystone. Capital has become more expensive, too.  But they trade at 8x operating cash flow, 12x earnings and pays a decent dividend. There isn't much growth, though. It's fine with this. Offers good downside protection. They can meet natural gas demand with their pipeline. Good valuation. He added to it in the low-$50's. But there will be cost overruns on the Coastal Gaslink project.

Difficult environment in this country for infrastructure. So the focus has to be on the US where they can grow and do acquisitions. Nice dividend yield, not expensive. He owns ENB instead, as it has a clear US strategy.

See goodreid.com for his March 3 article on this. Coastal GasLink is 87% complete, so risk of further cost overruns or negative news is fairly minimal. 13x earnings, solid balance sheet, attractive PE multiple.

It's been punished a lot recently given cost overruns on their projects. But the yield is attractive. Over the next year you can buy this.

West Coast pipeline will creating opportunity for Canadian energy producers.
Excellent long term prospects.
Legacy assets very hard to replicate.
Strong dividend.

The overhang of cost over-runs related to the west coast should disappear by next year so TC Energy should do better and the stock could move into the low 60's. Therefore now is a good time to buy in the low 50's.

Own it for yield and safety. Growth going forward, asset base is strong. Valuation has come down dramatically. 10-12x earnings, 8x operating cashflow, decent dividend yield, projects in the pipeline.

Dividend Explanation:
When looking at dividends, it is usually better to look at cash flow rather than earnings. 
Earnings have lots of non-cash expenses that impact results, such as depreciation and stock-based compensation, but have no impact on cash. But companies need cash to pay dividends so we prefer to look at operating cash flow. 
On that basis, in 2022 TRP had $6.4B in cash flow, and paid out $3.2B in dividends, for a payout ratio of 50%.  
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Canadians need TRP's Coastal Gaslink completed instead of paying for costlier alternatives. Pays over a 7% dividend. A cheap way of playing energy now. Is cheaply priced. Some concern over debt levels, but he's not overly concerned. Energy directly benefits from inflation.

(Analysts’ price target is $60.30)

Most controversial of the pipelines with Coastal GasLink over budget. Combined with inflation in operations, may not see dividend increases going forward. A lot of revenues are contracted and protected. 

They had inexcusable cost overruns on the Coastal Gas Link Pipeline. This is not a good time for this type of company with higher interest rates affecting the cost of borrowing. Don't buy a stock for the dividend - buy it for the growth in free cash flow.

Does not own shares in the company.
Huge cost overruns that make profits hard.
Not a growth business.
Share issuances make it hard for business to prosper.
Strong dividend yield does not make up for weak shareholder returns.

Very strong company. 
Fundamentally is a good company (legacy assets).
Energy demand growing across North America.
~6.8% dividend yield is very healthy.
Strong name in the sector.

Trading in a range for the last 10 years. Very nice dividend is not fabulously covered, but pretty sound. Sold assets to help pay for Coastal GasLink, so that's well funded. Long record of steady dividend increases, and that should remain intact. Yield is 6.68%.

He's been adding to this since last fall. Energy prices are undervalued. Oil could return to $100/barrel depending on China's reopening. He likes TRP's dividend.