TC Energy (TRP.TO)

Down 20% this year. This is one of the utility/pipelines that have massively underperformed, because of fears about interest rate increases. These are interest rate sensitive to some degree, but Canada has cut interest rates twice and the US hasn’t raised interest rates. Keystone XL will get sorted out at some stage eventually. Have a great portfolio of clean energy and pipelines, and will get some growth by building ones that are allowed to progress. In the meantime you’re getting a pretty reasonable yield.

Decent yield and increasing 5-7% a year. A little challenged like all pipelines by current energy prices. Over the next couple of years they have projects that will come on, but after that it is clouded and could slow down dividend growth. Multiples are reasonable.

A well managed company, but trading where it is strictly for the dividend yield. They have not increased earnings over the last decade or so. As rates start to rise one day, these utilities are going to suffer.

The dividend is safe. 8% dividend growth over the next few years. In 5 years you will probably be fine.

The challenge he has is the Keystone issue and they have a tendency to move with the price of the commodity. The dividend yield looks inviting and the dividend quality is decent. He thinks this group still has room to go down further.

Sold it in the upper forties and as not been tempted to go back. It was his choice because of all the great prospects. Don`t be married to the stock.

Is this worth holding for a one-year term? He believes it is. This has been weaker than what he would have expected at this stage. Doesn’t think Keystone will make a huge difference to the price. They have target of growing their dividend at 8%-10% a year through 2017, and feels that is achievable. They are cutting costs and have lain off a number of people. There is decent upside from these levels.

(Top Pick Oct 20/14, Down 16.72%) He likes it for the dividend and their increases. The pipelines act like they are oil producers, which they are not. Keystone is priced out of the stock.

Likes this stock. It has had a brutal year in terms of share price with a decline of about 20%. In the meantime its business is increasing. Management has guided to about a 9% dividend annual increases for the next few years. Have a number of capital projects that are on the go. Tends to get a lot of negative press, but they have a lot of great growth projects. A good holding.

Down about 10%. There is a flaw in many people’s thinking. It is always dangerous to buy companies at historical highs and hope that it will push back up through the old high and continue from there.

He prefers Enbridge (ENB-T), but this one is fine. Shorter term oil prices are going to affect sentiment for both names, but he just thinks there is better growth in Enbridge. Valuations are somewhat similar, but in his view, the cash flow growth, dividend growth and earnings growth are more predictable.

The Keystone XL pipeline is almost a side issue. They have so many other things going. Doesn’t know the seasonality on this, but technicals show the trend is on the downside, which is not good. It seems to be forming a base which is encouraging. Thinks it has limited downside potential, probably due to the nice dividend that it has. It is also underperforming the TSE Composite, trading below its 20 day moving average, short-term momentum indicators are trending down. Wait until there is confirming evidence that the stock has actually hit a low, before adding to your position. Yield of 4.7%.

The fundamental case longer-term, (3-5 years) is very favourable. The gas distributors in Ontario and Québec have just dropped their opposition to Energy East, which is a huge plus going forward. The saviour for the Canadian energy business is twofold. Energy East will take our Western oil east and displace foreign oil. Also, something favourable will happen with Kinder Morgan or with the Northern Gateway pipeline so we can ship the other energy to the Pacific.

Trades at 20X earnings and has a 3.9% dividend yield. Has one of the great pipelines, but the issue is that there are a lot of other things happening. Volumes have gone down in Western Canada. Obama has issues with the XL pipeline. They have to diversify a lot more, which is a hard thing to do in the environment they are facing. He thinks the stock doesn’t do well over the next little while. If you own he would consider exiting. Enbridge (ENB-T) is a much better company.

(Past Top Pick, July 21 2014, down 9.13%) Stock was doing well until we had this crazy reversal. Using stop losses he got out of all 3 of his past top picks because of the oil crisis.. Now the stock is fighting and it is falling. If it can find support around the $47.00- 48.00 level and If Obama changes his mind it could be a stock with a new high. Buying it here you are doing a 50/50.