TC Energy (TRP.TO)

She doesn't own TRP-T, but owns Inter Pipeline, Pembina Pipeline and Enbridge. She prefers ENB-T over TRP-T because it has a strong backlog of projects and expects to grow their dividend 12-16%.

Longer-term they are growing their dividend 5%-8% per year, which he likes. You are probably paying nothing for Keystone and maybe a little for Energy East. Growth over the next couple of years, is primarily infrastructure in Alberta.

On his radar screen, but he already has 3 pipelines. Thinks Keystone and East/West pipelines get built, but he would prefer to stick to the other three.

Pipelines are an essential part of the whole energy infrastructure and he doesn’t see the production side easing off that much. Part of the problem now is that we still have big oil sands projects coming on, and they are going to keep on coming simply because we have already expended $1-$2 billion. This is going to be in business for a while. Dividend is okay and is likely to grow.

A great, long term play and a nice dividend payer. However it is very, very expensive because it is an over owned stock. This is not something he would be putting money into at these levels.

(A Top Pick Dec 20/13. Up 13.14%.) Doesn’t think Keystone matters anymore. If it happens, that will be gravy. What is more important is the pipeline that they finish building between Oklahoma and the Texas coast. Pipelines are a monopoly. No one is building them any more and there are a lot of restrictions.

His problem with this is its valuation. Trading around 23 or 24 times earnings. Looks like it has some earnings growth built in at about 5% and some dividend growth which is good, but the valuation just astounds him. They still need a lot of capital.

Thinks this is fully valued. There are a couple of hedge funds running around trying to agitate for some change and do some financial engineering by spinning off some of the assets into some MLPs, juice up the yield, borrow some money and sell it to investors so the hedge fund can make a bunch of money. If this sold some of its power assets, that would be a positive. Very interest-rate sensitive.

(A Top Pick Dec 20/13. Up 20.83%.) Has been adding to his holdings in the last week, just on speculation of the Keystone project.

A republican senate is positive for TRP-T, but there are plenty of home grown opportunities. Keystone would be an added benefit.

Thought this one got a little bit overdone on the news flow that they would be able to split the company. He owns it and likes it. It is a great company, but he would prefer Enbridge (ENB-T).

Keystone XL does not matter anymore. Growth of the company will happen inside Canada. They may spin out their power generating assets and release value. This is a dividend grower.

Pipelines are massively overvalued and could remain so for quite some time. He has a fundamental value for this one at $38.94, a negative 28%.

If you are going to own pipelines for a long period of time, he would give the edge to Enbridge (ENB-T). This company has had a correction, but what has been holding them up is the worry about the XL pipeline. Over the next several years, he sees their cash flow going up to the $6 range, so he feels you are paying a fair price for it today, but it is not a bargain.

Prefers ENB-T as TRP-T is more fully valued. He would take money off the table, but you can’t go wrong owning this.