TC Energy (TRP.TO)

With all the growing production of oil/gas in North America, who is going to benefit. Doesn’t like the producers. Pipelines must have billions of new dollars at their fingertips. They’ll enjoy a tailwind for 2 decades.

Some, at least, of the approval of the Keystone pipeline by the US has been priced into the stock.

1^st Preferred Y’s. This has a 5.6% dividend, a straight perpetual, and the company can Call it but you do not have a Put option on it. Thinks that this will get called sometime over the next 2 years.

(A Top Pick Nov 30/11. Up 10.39%.) Thinks Keystone goes through regardless of who gets in. Growth visibility has never been better. His target is $52. Add to your holdings on any kind of weakness.

(A Top Pick Oct 17/11. Up 4.3%.) Preferred 4.4% Series 5. Callable on January 30/16. Happy with a 4.4% dividend.

Have about $3.5-$4 billion in projects that have been approved and that they are already starting to work on. Also, have $13-$14 billion of projects that are pending approval. This includes the Keystone xl project. There is so much out there that he thinks will get approved and that will be accretive to earnings and growth. Good dividend yield which they regularly grow.

or people who hold it for longer term yield, it is ok. Going forward, the pipeline in the US could get approved. Look at what the dividend increases over time could be and the modest capital appreciation. Could see it pull back 10% or so in a bad environment. He would hold on to it. It is fairly valued.

Will the outcome of the US presidential election impact the timing of the Keystone pipeline? When it is approved how much of a bump will it give to the stock? If Mitt Romney gets in, he has already publicly stated that he will approve it the 1^st day in office. Expect there will also be approval if Obama gets in, particularly when the pipeline is being redirected. Not so sure it will get a big bump.

This one has been struggling for a number of reasons and one of the major reasons is that it ships mostly natural gas. Their main pipeline has been struggling with decreased volumes. They have tried to make up for the decreased volumes by raising the price they charge so then customers have shipped even less. Keystone problem is totally political and totally ridiculous. He would prefer Enbridge (ENB-T). Both of them are trading at fairly rich valuations.

It wants to go trans-border and has some very difficult issues with its main line going from west to east with natural gas. Have political issues with its shippers. The potential lies with the Keystone pipeline going south, which he does believe will be built regardless of who wins the presidential election.

(Top Pick Oct. 05/11, Up 15.58%)

Pipeline returns have never been stronger and there is a more visible earnings growth thesis than any other sector that he has seen. Keystone will go through. It is just one of the regulatory overhangs that will help unlock shareholder value. Have $13 billion of projects, pretty well paid for, coming on over the next 12-24 months which will be accretive. Longer-term growth initiatives all look really accretive. 5% dividend growth since 2007 will probably continue.

(Callers investment horizon is 4-5 years.) For that length of time, this would make sense. We are going to see a buildout of the pipelines and this company will benefit from that. Ultimately Keystone will get built. Have consistently increased their dividend over the years.

Good dividend payer. Not a particularly high grower. Not cheap at this point with the stock price being bid up in order to get the dividends. Stable and relatively low volatility going forward.

(A Top Pick Aug 30/11. Up 13.9%.) Probably moving into a more fairly valued scenario at this stage. Fantastic operators. Have a number of interesting projects in their pipeline. Expect the Keystone project will probably be passed at some stage. They can fund all of these out of cash flow. Strong dividend that is still growing.