Michael SprungEnbridgeENB.TOTOP PICKJan 09, 2024

Largest pipeline operator in North America. ~7% yield very strong. Expected to continue growing dividend. Recent weakness in energy prices reason for share price weakness. Assets very valuable as hard to replicated. Pause and/or falling interest rates will be good for business. Good for income oriented investors. 

Has competition from GEI, PPL, and TA, which all look good here. 15x 2025 earnings. 66% payout ratio on a 7.6% dividend, pretty safe. Dividend growth, EPS growth.

He doesn't think a 5% weighting in a stock is crazy, it's very reasonable. If you have a lot of conviction in those companies, then that's where your weighting should be. Yield is around 7%. Won't reduce the dividend unless something really terrible happens. Extremely mature company, will grow with GDP plus or minus, highly levered. 

Investors own for the dividend. He wouldn't overweight his portfolio with it, but makes sense for a certain demographic.

Difficult couple of years with interest rates. Big acquisition required issuing equity and taking on debt. Acquisition needs to be integrated, but they're pros at that. Diversifies its business. Stock's bounced back since then. No problem maintaining dividend. Becoming more US-focused, Canada's regulations make things too difficult.

Excellent business model with pause in interest rate hikes. Defensive business model with high dividend yield. Recent M&A very good for business. Valuable assets that are hard to replicate. 

Transition to EV vehicles will not occur overnight. Enbridge offers less risky option for investors. Good time to invest for long term investors. Strong dividend and valuable assets. 

For income, yield is almost 8%. Can't replicate pipeline takeaway capacity. Dividend safe, attractive, will likely increase in mid-single-digit range. See her Top Picks.

Turned the corner. Got hurt by high bond yields. Great business. Expectations reset after 2016 merger. Reset dividend expectations to mid-single digit dividend growth. Yield is competitive, good long-term hold. His large-cap, Canadian energy exposure is through TRP, better valuation and yield.

Will continue to own. Great defensive name. Coming off "over sold" position. Even if economy softens, demand for products will remain. 

Long term, hasn't appreciated too much (5-10 years). Good for dividend oriented investors. Good stock to buy on weakness. Current share price is good opportunity. Has been buying shares. Will hold for the long term. 

Completed a big acquisition to continue to transition its business. Better run than TRP. See his Top Picks.

For income-seeking investors. Well run, very defensive cashflow. Diversifying business. Completed a big acquisition to continue to transition its business. Better run than TRP. Dirt cheap, 8x cashflow. Durable, defensive business model. Yield is 8%.

If rates continue to rise, delay buying this. Long-term, moving oil and gas out of western Canada is a very good business. ENB's infrastructure is already built. How shares do the next year depends on politics, rates and the Prime Minister's attitude towards oil. The yield is safe.

It's had a challenging year, but offers solid fundamentals and free cash flow. Pays a high dividend above 7%. ENB will pick up pace in 2024.