South Bow (SOBO-T)

Spinoff of TC Energy that owns oil pipeline assets. High dividend payer. Highly levered - will need to use free cash flow to pay down debt. Could take 2-3 years. Would recommend holding for dividends. Trading at high end of valuation range. 

Recent spin out from TC Energy. High quality name with excellent cash flow. Won't have a lot of growth, but dividend very safe and reliable. Good for bond proxy investors. 

Made up of oil pipeline assets previously owned by TRP. He got shares in the spinoff. Thinks that, long term, he'll sell; but not in a huge rush. Dividend estimated to be a juicy 9%, though not yet declared. But growth is modest, so dividend increases will be as well.

He doesn't know enough about the spinoff to be able to make a recommendation. Yield is 9%.

Now that the split's been done, things will need to settle. He holds both it and the spinoff, and he'll assess going forward.

Generally when there are spinouts, the spinout is set up for success. So he usually likes those products. At the beginning there are often a bunch of people who don't know it, sell it off, and that can be an opportunity.