TC Energy (TRP.TO)

His preference is TRP -- it has the gas assets, whereas SOBO has the oil assets. Spinoff happened because TRP wanted to lose the discount of oil. Negative sentiment on oil had hurt the multiple, while investor view on nat gas was a lot more positive.

In the space, his ranking is ENB at #1, then PPL, then TRP. Valuations are quite strong. Of the ways he invests for clients, the "income bucket" has performed so well recently that it has the fewest number of Buys of the core "buckets" that he follows. Due to the outlook for interest rates being to go down, income names have been bid up in advance of that. Therefore, valuations have become a bit rich.

Watch and wait -- could be some volatility and an opportunity to pick it up a bit lower. He'd look to try to get it around 10x cashflow, and it's north of 11x right now.

It has made data centre announcements and has an attractive highly contracted asset base mix. It has had a good run over the past two years. Trades at a premium but warrants it with visible growth and competent management. Trades at 18X 2027 with 4 to 5% growth. You can buy it but he prefers Gibson or Altagas with a better price to growth ratios.

The only pipeline he owns. Likes the huge gas pipeline network. Pipelines are not as vulnerable to commodity price fluctuations. Strong, investment-grade credit. Good path to growing dividend at mid-single-digit pace. Good yield. Pullback is a good opportunity.

This market will make anyone look good :)  One of the largest pipelines in NA, focused on natural gas. Strong future, as access to overseas markets will allow those markets to reduce reliance on coal, for example. We still need to source power when the wind stops blowing and the sun goes down.

Another great Canadian company. Pays and grows dividends. More data centres means more energy needed, a lot fueled by natural gas and that's right in TRP's wheelhouse. If it's a core holding, keep holding. Could use pullbacks to buy more. Additional BOC rate cuts will also help.

One of his key energy holdings. Is more opportunity to invest in the US, so there is growth, despite being a highly levered company.

TRP P/E at 19X compares with its 10-year range of 12 to 19x so it is certainly on the high end of the range. EPS growth as noted is not going to be spectacular. The stock is trading for its yield of 4.74% and its safety going into a possible recession. Business is historically stable and the tax-adjusted yield is certainly attractive vs fixed-income alternatives. We are comfortable with it, but more as an income security and would not expect big gains here. It's up 33% in the past year and we doubt that rate is sustainable, certainly. The debt is nothing new of course, and common for the sector. Lower rates will help here. It has 13 BUYS, 10 HOLDS and 3 SELLS. Avg. target price $73.37. We would consider it 'buyable' slightly lower. Our main comment here references the 'riskier' note in the question. IF we head into a period of weakness, we would prefer to own TRP over dozens of other.
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Not adding now because it's run up so much. Likes that its growth is now from smaller projects that are more likely to go through with minimal regulatory issues. Still a forever hold.

All these companies carry heavy debt. Once slip up and their cash flow is in trouble. He prefers companies with high cash flow and low capex, like Apple and Meta. Not for him, but if interest rates continue to fall in Canada, dividend stocks like this could look stable and attractive. Pays a good 4.7% dividend.

He owned it for a while. Had a big run-up last year but thinks it is pretty much done now with a lot of insider selling. Tends to have big swings.

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.

Catalyst was spinoff of South Bow oil pipelines, so remaining energy would be "clean". 

Defensive. Pays a 4.8% dividend. Natural gas demand will endure. No tariff worries. Data centres need power, and he doubts tariffs will impact Canadian energy supply.

Great run second half last year, has gone sideways since then. Now breaking out above $68, which is quite positive. It's had lots of time to digest and consolidate.

It oversold for a while and is not a fast growing company but data centres need gas to provide their demands for electricity. Pipelines are good for recession and TRP is up 4% since Feb.19.