Enbridge Inc.

ENBRIDGE INC. $44.58 (Toronto symbol ENB; Shares outstanding: 856.7 million; Market cap: $39.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.enbridge.com) will make a final decision on its proposed Northern Gateway pipeline in the second half of 2016. This $7.9-billion project would pump crude from Alberta to the B.C. coast. From there, tankers would ship the oil to Asian markets. Regulators have approved the line, but the new federal Liberal government plans to ban tanker traffic off of B.C.’s northern coast, which hurts the project’s viability. Meanwhile, Enbridge has raised its dividend by 14.0%. The new annual rate of $2.12 a share yields 4.8%....

ENBRIDGE INC. $43 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 863.7 million; Market cap: $37.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.enbridge.com) will make a final decision on its proposed Northern Gateway pipeline in the second half of 2016. This $7.9-billion project would pump crude from Alberta to the B.C. coast. From there, tankers would ship the oil to Asian markets. Regulators have approved the line, but the new federal Liberal government plans to ban tanker traffic off B.C.’s northern coast. That hurts the project’s viability. Meanwhile, Enbridge expects its cash flow per share to improve from $3.65 in 2015 to $4.15 in 2016. That prompted it to raise its dividend by 14.0%. The new rate of $2.12 a share yields 4.9%....

ENBRIDGE INC. $43 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 863.7 million; Market cap: $37.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www. enbridge.com) will make a final decision on its proposed Northern Gateway pipeline in the second half of 2016....

ENBRIDGE INC. $47.24 (Toronto symbol ENB; Shares outstanding: 860.1 million; Market cap: $40.5 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.enbridge.com) has paid $200 million U.S. for 100% of the New Creek Wind Project in West Virginia. This development consists of 49 wind turbines that can generate a total of 103 megawatts. It should start up in December 2016. The company has long-term contracts to sell this power at fixed rates, which cuts the risk of this investment. Including this purchase, Enbridge has invested $5 billion (Canadian) in renewable power projects with a total capacity of 2,000 megawatts....

MANITOBA TELECOM SERVICES INC., $30.24, Toronto symbol MBT, has agreed to sell its Allstream division, which sells telephone, Internet and other communication services to businesses across Canada. Allstream supplies 40% of Manitoba Telecom’s revenue. The remaining 60% comes from its MTS division, which has 1.3 million telephone and wireless customers in Manitoba. The buyer is U.S.-based Zayo Group (New York symbol ZAYO), which will pay $465.0 million. Manitoba Telecom will probably use the proceeds to pay down its long-term debt of $677.1 million, which is equal to 28% of its $2.4-billion market cap (or the value of all outstanding shares)....

ENBRIDGE INC. $50 (www.enbridge.com) is paying $750 million for 24.9% of the 400-megawatt Rampion offshore wind project in the English Channel. To put that price in context, Enbridge earned $399 million, or $0.79 a share, in the third quarter of 2015....

ENBRIDGE INC. $50 (www.enbridge.com) is paying $750 million for 24.9% of the 400-megawatt Rampion offshore wind project in the English Channel. To put that price in context, Enbridge earned $399 million, or $0.79 a share, in the third quarter of 2015. Construction on this wind farm began in September 2015, and it should start up in 2018....

ENBRIDGE INC. $55.89 (Toronto symbol ENB; Shares outstanding: 860.1 million; Market cap: $46.6 billion; TSINetwork Rating: Above Average; Divd. yield: 3.3%; www.enbridge.com) has received regulatory approval to reverse the flow of crude oil on its Line 9 pipeline between Sarnia, Ontario, and Montreal.

Under the plan, oil will now flow from Sarnia to Montreal. Enbridge will also increase the line’s capacity so it can handle heavy crude from Alberta’s oil sands.

It took longer than expected for regulators to sign off, so the project’s cost jumped to $800 million from its original estimate of $100 million. To put that in context, Enbridge earned $505 million in the latest quarter.

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These two utilities are using different strategies to boost their earnings: Enbridge is investing heavily in new pipelines, while Manitoba Telecom is cutting costs at its struggling Allstream unit. We feel both firms will ultimately succeed, and their future growth will give them more cash for dividends. Right now, however, we think their high multiples to earnings make them vulnerable to a setback if their profit growth stalls. ENBRIDGE INC. $56 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 860.1 million; Market cap: $48.2 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.enbridge.com) gets 85% of its revenue from pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S. The remaining 15% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State....

ENBRIDGE INC. $55.89 (Toronto symbol ENB; Shares outstanding: 860.1 million; Market cap: $46.6 billion; TSINetwork Rating: Above Average; Divd. yield: 3.3%; www.enbridge.com) has received regulatory approval to reverse the flow of crude oil on its Line 9 pipeline between Sarnia, Ontario, and Montreal. Under the plan, oil will now flow from Sarnia to Montreal. Enbridge will also increase the line’s capacity so it can handle heavy crude from Alberta’s oil sands. It took longer than expected for regulators to sign off, so the project’s cost jumped to $800 million from its original estimate of $100 million. To put that in context, Enbridge earned $505 million in the latest quarter....