TC Energy (TRP.TO)

TRP vs. ENB vs. PPL Likes it. Trading below pre-Covid highs, as it's viewed as more defensive. Keystone XL announcement was initially negative, but a relief going forward. Not starved for growth. Lots of capex in development. Market will continue to rerate the stock. He prefers ENB, as its valuation is still at a modest discount, Line 5 is mostly resolved. TRP, PPL, and ENB are all high quality companies that you can't go wrong owning. But ENB is his pick of the three.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Revenues fell short of estimates by 8% but EPS was 4% better at $1.16. Outlook is good despite losing Keystone. Comfortable buying at 14x earnings. Unlock Premium - Try 5i Free

The cancellation of Keystone XL benefits TRP because it gets them to focus on their other growth opportunities worth over $20 billion which are less risky. He prefers ENB given lower valuation plus their higher dividend yield. ENB is the best large-cap midstream in Canada and excess cash flow may lead to share buybacks. Both have strong balance sheets and can grow dividends.

For income investors, pipelines look great. Great dividend. The sector suffered neglect as people chased higher growth areas of the market. He owns ENB, PPL, and TRP. Also consider KEY, which has more exposure to the commodity. Makes a lot of sense for conservative investors.

Canadian pipelines still offer value. We still rely on fossil fuels and will for a long time. Difficulty in building new infrastructure raises the value of existing infrastructure. TRP and ENB can offer good profitability, sizable dividend yields. Prefers ENB, but likes both.