They're adding $10 billion in new projects in 2019 plus $26 billion in 2020, mostly natural gas, but also nuclear assets. If Keystone ever gets approved, TRP will take off. Pays a 5.5% dividend. You get paid while you wait. Big beat in Q3. 8-10% dividend growth. (Analysts’ price target is $64.33)

He doesn't see growth into 2020, but the coastal link for the LNG Kitamat should propel free cash flow. Trading at a cheap 15x earnings. Stable payout ratio. He likes it. You can add to it at these levels.

Pipeline stocks can be good investments.  Oil is going to keep on flowing.  There will be pipeline expansion at some point.  It is not of interest to him, however.  Make sure you look carefully at the financials and political ramifications affecting the stock.  It can be difficult to analyze it and come to clear conclusions.

TRP-T or ENB-T? At these prices, he thinks TRP-T is in fantastic shape and the mainline natural gas represents half of the company’s NAV.  Within a short period of time he thinks this will decline to only about 10-15% of NAV.  This signifies how the company is diversifying – although the stock is a little expensive right now.  ENB-T is less dynamic, but he believes their infrastructure is advantaged (as there are few projects being approved) and the dividend continue to grow.  You could own both and not be concerned.   

It is hard to tell if this company has fallen due to the Trans Mountain issues or because of rising interest rates.  He expects news on Keystone XL in the fall.  Growth in the Alberta natural gas system has good potential, especially if a west coast LNG project goes ahead as they have a virtual monopoly on the gathering infrastructure.  An announcement on the project could be coming as early as next week.  Yield 5%.  

Asked to compare Enbridge and TransCanada, he said he currently owns only Enbridge. Both are utility companies. Both pay high yields. Their stock prices are very interest-rate sensitive because interest rates drive the relative value of their dividends and because they borrow enormous amounts of money and interest rates determine the cost of carrying these loans. He holds utility stocks for clients who need steady income but this is, in general, the wrong time to buy utilities.