Enbridge

ENB-T

Pipelines in Canada are stable income earners. ENB-T, however is more indebted than some of their peers. He does not like heavy debt loads. He would prefer a pipeline with less debt. If interest rates ever go up they could cut their dividend.

He owns this North American pipeline business. He likes the dividend and thinks they will continue to grow it. Two of their lines are in regulatory delays, but he thinks this will be overcome. A delay of Line 5 would actually become an international incident, he thinks, so it has to go ahead. Yield 6.5%

Much-improved balance sheet, but their line 3 and 5 have troubles. They need line 3 to go through to grow. Line 5 is another headwind. It's okay as a yield proxy--the dividend is fine, but don't expect growth. Pembina and Transcanada are better.

(A Top Pick Aug 08/18, Up 3%) Quite good value here still. Line 3 and 5 risks will be manageable and should be able to stay on schedule. The company has rebalanced their balance sheet as they said they would. An attractive yield over 6%.

Average down? Well-run and defensive. It's been pressured lately due to bad press, so now is a good time to buy. Pays a 6.6% dividend.

IPL-T IPL's valuation is higher than Enbridge's which also has better growth propsects in the U.S., though pipeline issues in the courts which he's confident will get resolved. He plays oil through the pipelines.

It's been attracting negative headlines--fatalities in a U.S. pipeline, as well as regulatory delays in line 3 into the U.S., their biggest expansion, and government opposition to replace line 5. Yields about 7%, but it's safe. Once the dark clouds pass about pipelines, the share price will recover.

He is focused on the dividend yield. They say it will continue to grow. He sees this trading back towards $55 and higher. Yield 6.71%. (Analysts’ price target is $55.66)

ENB has a lot of debt. A year ago, the stock was out of favour and the yield spike to nearly 8%. Fears of debt are unfounded. He'd own it if the debt were lower, but it's a safe, boring (good) stock. The dividend should be safe.

Buy more now? He is not a fan of Enbridge. The yield is not sustainable as cash flow does not support it. His model price is right around current values. His book value is $33 and that is where he thinks it may be heading. Yield 6.68%

One of longest stock that they've had in their portfolio. Had to pay down some debt. Confirmed higher earnings going through 2020-2023. Thinks longer term it's a great company. Attractive dividend and a great story longer term. A good quality company on sale, with an attractive dividend, that has a growth profile to it, with manageable debt levels. He buys at this level and recommends looking into it.

Energy infrastructure name. Durable cash flow profile. Overhangs are Line 3 and growth. Tremendous value. Defensive business, and you're paid a fantastic dividend to wait. Valuation's still compelling even if there is no growth. Yield is 6.67%. (Analysts’ price target is $54.88)

He owns it and has been a Top Pick in the past. It sells at a bit of a discount based on the doubt that they will be able to raise their dividend as they say. He thinks the yield is sustainable. The US regulatory delays will be eventually resolved. A good buy at these levels. Yield 6%

Pays a 6.5% yield. ENB is in an attractive sector for a long-term investor. ENB will survive this patch of no pipelines--eventually they will be built. This is good to average down over 3-5 years.

Still likes it. One concern is still Line 3 being delayed. In Michigan, government wants an earlier pipeline shutdown. The business itself is fine, but political risk could impact the stock short-term. Buy it at a 3-5% weighting, put it away, hold it for years. Nice dividend with growth.