TC Energy (TRP.TO)

This was a top pick because he wanted to keep the betas low, just in case there is a market correction any time in the next year. All the talk is about Keystone and their oil pipelines, but nobody is really paying attention that this has been accumulating a lot of gas pipelines and gas assets. Natural gas prices have been in the toilet for a long time, and that bodes well for them, because it is going to be the less pollutant, cheaper choice for the US moving forward. The dividend has been growing roughly in the 10% range which he expects will continue. Dividend yield of 4.2%. Trading around 20X PE. (Analysts' price target is $72.50.)

Hold or Sell? He likes this here. They have a lot of good irons in the fire. They are suggesting an 8%-10% dividend growth out to 2021. 18X 2018 is not bad for an 8% EPS growth. He would prefer Enbridge (ENB-T) right now, but this is a fine name.

The pipeline space is quite stable. Their plans are quite good. He could only own so many names in the space. He prefers PPL-T because they are diversified more into the mid-stream and infrastructure spaces.

He plays the energy/pipeline space through Pembina (PPL-T) where he sees a better growth profile. Likes their backlog of projects and the 5% dividend yield. Also, they are diversified amongst different commodities. Doesn’t think you will go too far wrong owning TransCanada.

(A Top Pick Sept 15/16. Down 8%.) *Short* (Pairs trade with a Long on TA-T.) He still has both positions on.

(A Top Pick Nov 2/16. Up 13%.) Has been reducing this because you own this when you want to be in energy, but in a chicken way. At this point, there is no need to be defensive, and she would much rather own producing names.

Wouldn't be in a rush to buy this. If you have a portfolio that is filled with telcos and REITs, he would definitely stay away from pipelines. You are going to see the pipelines under pressure as interest rates go up. This one gives you about 4.5% dividend yield. Doesn't see a lot of growth potential in terms of share price in the near term.

He likes this company. It gives a good Canadian source dividend, and a company that is more than Canada on an energy standpoint. They’ve diversified into the US, so it's not just a Canadian pipeline. There are some catalysts in the next little while. The stock has been stuck around $60. Typically, you buy at $60 and sell at $65 so it looks interesting. Has a good 4% dividend yield that should grow. Probably $65-$70 is the next range for this stock.

On the growth/pipelines/utilities/telecom group, you are looking for guys that can grow earnings so that they can grow dividends. This company fits. There was a big US acquisition in 2016, which really helped. Although Energy East is now defunct, you get the dividend yield of 4%, along with the demonstrative plan of growth including the dividend over the next 5-7 years. A great place to hide, particularly in this environment where everything looks and feels a bit expensive. (Analysts’ price target is $72.)

This had everything going for it in the past couple of years. One thing that is looking a little more questionable is their growth plan going forward. With their Columbia acquisition, they have lots of growth in the US, but in Canada they have the LNG pipelines, which look to be suspect at best. He hopes that Keystone XL gets done. Even if that doesn’t go, the company has a great infrastructure program with all the natural gas pipelines they can build. There is probably not as much opportunity from these prices as there is with others.

(A Top Pick Nov 11/16. Up 7%.) A toll business, the product goes through the pipe and they collect the toll. Dividend yield of 4%. Still a Buy.

It has been one of the stronger names in that space. They will grow the dividend 8-10% over the next few years. He has PPL-T instead, where you get more yield.

TRP-T vs. ENB-T. TRP-T has generation as well as transmission. ENB has more retail as well as wholesale transmission. They are both favoured by income seekers. When there was talk of increasing interest rates at the BOC, these stocks tended to go down. This makes him nervous about the pipelines and utilities. He owns TRP-T and feels everyone should own one of them. You won’t go too far wrong with either one.

(Market Call Minute) If it pulled back $2 more it would be in buy territory.

Headlines today are all about Brascan Keystone. As a long-term investor, you want to ask yourself if you want to own a major North American mover of an energy commodity. This company fills that bill quite nicely. With their most recent acquisition of Columbia, they have a really good play on the whole North American energy infrastructure. Reasonably hedged between oil and natural gas. A great place to play in the dividend growth we have seen for 50 years, and will probably see down the road as well. A little pricey relative to Enbridge (ENB-T), but this is a great long-term ownership, particularly since we are not going to build a lot of new pipelines. Dividend yield of 3.9%.