TC Energy (TRP.TO)

Owned off and on. Whole sector was hurt because of interest rates, high debt. Concern is not enough capital to fund US acquisition. It’s a great business, good long-term income stream, diversified. They own ENB instead, it’s a better valuation.

A yield play with growth opportunity. It has opportunity in Colombia and is not as dependant on heavy oil pricing. He sees 7-8% dividend growth over the next few years. They could also participate in the west coast LNG development. Energy East could also gain some traction given issues with Saudi Arabia. Yield 4.9%. (Analysts’ price target is $67.32)

The pipelines are a hot button issue. He looks at them as a dividend play with some growth potential. This is one of the larger names out there. Others have more exposure to the US. He thinks the divided will grind its way higher. There is some potential for growth. For a dividend oriented investor it is okay. He thinks the energy east pipeline is dead.

With a 14.7 PE and an estimated 9.8% free cash-flow yield and growing at 11% it is safe to buy. Not his favorite name in the space. But offers good value. As long as there is sufficient growth the pipelines compensate for the negative impact of interest rates rising.

(Past Top Pick, July 4, 2017, Down 4%) They have good assets and some growth. They want to raise dividends by 5-7% annually over 5 years, which is why he bought it (and still holds it). He's perturbed about the state of pipelines in Canada though.

It is going to go higher. Very cheap at 14.7 P/E. 9.8% 2019 estimated cash yield. They are growing their earnings. Funding is available for their new projects. 60% stable payout ratio. Dividend yield of 5%.

The pipelines have been pressured this year due to troubles in building pipelines. They're also interest-rate sensitive. This offers some decent value now with solid growth prospects. There's still uncertainty around the Kinder Morgan pipeline--who will eventually buy it?

There has been a selloff in these stocks this year because of rising interest rates. He considers it a buy for sure. They are growing earnings per share of 4% and with the growth it is 8-9% total return expectation. It is defensive for the next down turn.

They just announced earnings. The concern regarding this name was that they bought Colombia pipelines system down in the northeast US and they used a lot of capital for that. He prefers Enbridge (ENB-T). Great asset base. A name you can still continue to hold long term.

He bought this recently given reasonable valuations in mid-teens, and they can cover their dividend. There's some growth.

There is a $68 target amongst analysts. They are quite positive. You need to consider if the climate is ripe for the expansion of pipelines in Canada. Conservatives in power next year would be positive. He worries how much higher interest rates will go.

He likes the pipelines, though we're not building any right now due to environmentalists. We haven't built any to the coast, so we can't ship any, which makes us beholden to the U.S. That's a big concern. Careful with pipelines, because of interest rate exposure. Pipielines are infrastructure, after all. He likes the yield of TRP which is sustainable. Will add more shares later. It's a solid vehicle.

What company do you prefer CN Rail (CNR-T) or TransCanada (TRP-T)? He likes both. Near term he likes a little more Transcanada (TRP-T) as it is an asset class that is in shortage now. CN Rail (CNR-T) took the cost cutting a little too far and is struggling a little but long term they are a great business.

The entire pipeline sector faces higher interest rates and oil price pressure. When TRP's big pipeline projects finally happens, though, it will benefit grreatly. But the next while will be volatile.

Pipeline companies need a lot of cash to fund pipelines. The investment community is suspicious of TRP because the price of oil and gas are declining and then there's U.S. competition. But TRP finally has approval to build Keystone. Will see dividend growth. Nibble at this.