Enbridge Income Fund Holdings

ENF-T

You are there for the yield. ENB-T gives you less yield but more upside. Over the last year they have both been hammered, but ENB-T has recovered and this one has not. If you can tolerate less yield, then ENB-T is the more attractive investment.

A partial spin-out out of Enbridge (ENB-T), and what he would consider as the high income part of Enbridge. It gives you a higher yield, but less growth. At these levels, he likes this. Won’t give you a ton of appreciation, but will give you a steady income.

This stock is doing a downtrend right now. There is some potential it will break out around the $30 area and that would be positive, but you have to sit back and see it do that before you buy it.

The dividend paying portion of the Enbridge family of companies. It has retreated to a point where it is certainly worth looking at. The question he always has is, is there enough growth to go with it. He buys income stocks that always have a growth component to them. With the price retreating the way it is now, you will probably get enough of a bounce in the market to get 5% from the market plus you have a nice dividend.

Model price is spot on, $30.87, 6% above yesterday’s close. The balance sheet is not great.

As an investor, you have to ask yourself if you want more growth or more yield. This is set up to be more of a yield vehicle with a little less volatility, and Enbridge (ENB-T) is set up to have more growth. If you just want yield, then you are good in this one. Dividend yield of 6.5%.

Sees a lot of upside, but if looking at this as a REIT, you are going to get paid a 7% dividend, and he sees 10% annual dividend growth over the next several years with drop downs from Enbridge (ENB-T). With Enbridge having issued $2 billion in equity, this company is much less likely to go to market to issue more equity. As a yield play this is fine.

It is a high growth company and does so by a lot of acquisitions. He would not be particularly interested because it would be a high growth rate for a long period of time. This is not a value investor’s stock.

He likes the long term fundamentals. A good company. He would not own ENB-T and ENF-T in the same portfolio. He just owns the parent company.

He owns the parent business. If you want a regular stream of income, this is an ideal candidate for the long term. It is butting up against a support level. Pick away at this one.

Cheap at around 1X BV. Thinks the correction in pipelines is pretty much over. Dividend yield of 6.8%.

Was the recipient of a number of Enbridge (ENB-T) Parent Corp assets last fall. These assets were more mature and had less growth in Enbridge parent, and was also a mechanism to raise cash for Enbridge. Likes the growth profile, but doesn’t like their constant need for equity. You have to offset that with the dividend growth. Prefers the parent. Dividend yield of 6.7%.

This is in a downtrend with lower highs and lower lows. Pipelines tend to be a more defensive play and can actually do well in the summer, about May through to October. However, with the broader decline in commodity prices, these things have gotten hurt in the energy complex. Chart shows a clearly downward trending channel. The major moving averages are all pointing lower. He would avoid this until it starts basing. (See Top Picks.)

It is a drop down vehicle for Enbridge Corp. When an asset gets to an income producing phase, they can drop assets down. Renewable assets are secured with contracts. If they issue equity to buy these assets, it is buying opportunities.

These stocks ran up with oil stocks. The multiples are now recompressing. They are now at a level that is pretty compelling. He thinks it is getting to be a buying opportunity (within 10-20% of bottom).