Income safe? Both ARX (8% yield and 100% payout ratio) and IPL (yield of 7.7% payout ratio of 110%). He thinks both should be fine to continue with the dividend. If he had to pick, he would prefer ARX as a producer and with lower debt.
IPL vs ENB If he was just interested in income, he'd pick IPL. But he's interested in total return, so he owns Enbridge. Both good companies, but concern with IPL was no capital appreciation. Enbridge has continued to grow dividend at 10%. IPL has a huge capital project on the go, which diverts cash from dividend increases and share buybacks. Enbridge getting Line 3 replacement in place would derisk the story. The dividend would then creep down to 5%, which implies a stock price north of $60.
IPL vs ENB If he was just interested in income, he'd pick IPL. But he's interested in total return, so he owns Enbridge. Both good companies, but concern with IPL was no capital appreciation. Enbridge has continued to grow dividend at 10%. IPL has a huge capital project on the go, which diverts cash from dividend increases and share buybacks. Enbridge getting Line 3 replacement in place would derisk the story. The dividend would then creep down to 5%, which implies a stock price north of $60.
ENB vs IPL? A classic case, where he prefers ENB (due to its growth profile). Getting a higher yield on IPL will be overshadowed by a higher capital return on ENB. He owns ENB.
He prefers other pipelines. They have to operate perfectly for the next few years to . Canadians should own a pipeline. Prefers Enbridge, a fine operator with better dividend growth.
He prefers other pipelines. They have to operate perfectly for the next few years to . Canadians should own a pipeline. Prefers Enbridge, a fine operator with better dividend growth.
