TC Energy (TRP.TO)

Does not own shares - prefers Enbridge. However, company is overall a great business. Recent Southbow spin out has left company as a pure gas company. Very good assets - hard to replicate. 

Last quarter it spun off SOBO, the liquids portion. So now it's primarily a gas pipeline, with a slug of Bruce nuclear (powers 30% of Ontario). Paying down debt. Gas and solar will bridge the cap to additional nuclear for data centres.

They deal with a third of the planet's natural gas. Great to own. Should enjoy tailwinds from the U.S. Is firing on all cylinders. After the spin-off, this is more investible.

Brand-new 52-week high today, perhaps due to good news on pipelines. Note that if yields start to move higher, could affect dividend names. Good dividend of 4.8%, relatively safe. He wants at least high singles or low doubles for earnings growth, so this one doesn't fit.

He owns ENB instead.

Looks great. Political picture just got a lot better. Talk of building gas-powered plants to fuel data centres. Stock's on a tear. He owns ENB and PPL.

Pays a 5.8% dividend and boasts a one-year total return of 40%. Given the recent run-up, it's overvalued and shares will be flat from here. Would consider a pullback. It depends on what happens with the US election and commodity prices.

Dividend is attractive and sustainable, likely to be increased every year. Now just natural gas after spinning off oil pipelines. Cashflows are pretty defensible.

Don't buy stocks according to who may or may not get elected. Also, the transition from fossil fuels to renewables will take a while. In general, if you're overweight a particular stock, then sell some and re-allocate. He expects the pipeline business to remain good, especially with lower interest rates.

The spinoff won't affect his technical analysis. Chart shows a drop on October 1 (day of the spinoff) below a recent low, there's actually a gap and the price action is orphaned away from the rest. Deeper support at $58. Eventually, TRP always brings in the money on any weakness.

Good dividend payer, stable business. RSI turned up in July compared to the S&P.

Recent spinoff of South Bow interesting to watch. Uncertain on whether dividend will be sustainable without South bow assets. Would wait to watch. Nov 7th earnings will be indicative of future dividends (only so much cash flow to go around). 

Has only a bit of exposure, not a major amount. He's noticed that analyst price targets have started to come down, due to the South Bow spinoff. He doesn't know enough about the spinoff to be able to make a recommendation. 

Almost like a utility. Pipelines are not getting a lot of new approvals. Like the rails, what's there is there. Strong market position, but where is the growth going to come from? M&As can dilute shares and add debt. Well run, pretty steady. He'd be comfortable holding. Not huge upside, but some; income potential.

Now that the split's been done, things will need to settle. He holds both it and the spinoff, and he'll assess going forward.

Generally when there are spinouts, the spinout is set up for success. So he usually likes those products. At the beginning there are often a bunch of people who don't know it, sell it off, and that can be an opportunity.

The stock is not really down much today. Today is the spin off date for South Bow Corp. and TRP receive shares in SOBO as part of the company's reorganization. We would continue to see TRP as decent for income investors.
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He just sold it. He may go back into it if they spin off. He took profits. (They spin off tomorrow.)

It trades at 12X earnings and is reasonably valued. Rate cuts in Canada are a tailwind for pipelines. There is a lot of insider buying. He might trim if money was needed elsewhere.