TC Energy (TRP-T)

For the past 6 months, the chart has been sharply up. Pays a lovely yield. He would add at current levels. Strong technicals. He likes pipelines. Energy should do fine at least for the first half of 2025.

Even if that were to happen, you'd want to put your exposure to energy in the pipelines. We are going to see increased volumes, barring a recession in the States or NA. Fantastic news for pipelines. Not worried so much about what the price actually is, the way a driller or downstream producer would be. Relatively decent dividend.

Interest rates will keep falling and therefore benefit pipeline and utility stocks. Dividend growth will be slower in the next 5 years vs. the past 5. Pipelines are a solid dividend play with some growth.

The total return includes a big dividend. It has rallied on interest rate cuts and has also benefited from the euphoria around data centres which consume a lot of power. The main source of immediate energy needs over the next ten years is natural gas since nuclear and renewables will take time to build out.

Had the specific catalyst of breaking apart with the SOBO spinoff, which unlocked value.

Can be a core name. After the split, the growth assets and those with better potential were assigned to TRP. SOBO got the oil pipelines, which are great for the dividend, but no growth. 

He looks at capex programs going forward and how much they're investing in infrastructure. More infrastructure means more cashflow and, hopefully, more dividend increases.

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.