Enbridge Inc.

ENBRIDGE INC. $62 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 851.6 million; Market cap: $52.8 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State.

New projects boost revenue

Since 2008, Enbridge has spent $20 billion on 39 new pipelines and other projects. Thanks to these investments, the company’s revenue soared 164.1%, from $12.5 billion in 2009 to $32.9 billion in 2013. Its revenue probably increased to $37.7 billion in 2014.

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Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor. ENBRIDGE INC. (Toronto symbol ENB; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State. Since 2008, Enbridge has spent $20 billion on 39 new pipelines and other projects. Thanks to these investments, the company’s revenue soared 164.1%, from $12.5 billion in 2009 to $32.9 billion in 2013. Its revenue probably increased to $37.7 billion in 2014....

ENBRIDGE INC. $62 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 851.6 million; Market cap: $52.8 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) gets 90% of its revenue from pipelines that pump oil and natural gas from Western Canada to Eastern Canada and the U.S. The remaining 10% mainly comes from distributing gas to 2.1 million consumers in Ontario, Quebec, New Brunswick and New York State.

New projects boost revenue

Since 2008, Enbridge has spent $20 billion on 39 new pipelines and other projects. Thanks to these investments, the company’s revenue soared 164.1%, from $12.5 billion in 2009 to $32.9 billion in 2013. Its revenue probably increased to $37.7 billion in 2014....

ENBRIDGE INC. $62.78 (Toronto symbol ENB; Shares outstanding: 848.8 million; Market cap: $53.5 billion; TSINetwork Rating: Above Average; Divd. yield: 3.0%; www.enbridge.com) has won a contract to build an underwater pipeline that will pump crude oil from a new platform in the Gulf of Mexico to an existing pipeline network. This deal is worth $130 million, which is small next to the $8.3 billion of revenue the company reported for the three months ended September 30, 2014. However, deals like this enhance Enbridge’s already strong reputation in the region; its pipelines already carry about 40% of the natural gas produced in the Gulf’s deeper areas. The new line should start up in 2018....

ENBRIDGE INC. $62.78 (Toronto symbol ENB; Shares outstanding: 848.8 million; Market cap: $53.5 billion; TSINetwork Rating: Above Average; Divd. yield: 3.0%; www.enbridge.com) has won a contract to build an underwater pipeline that will pump crude oil from a new platform in the Gulf of Mexico to an existing pipeline network.

This deal is worth $130 million, which is small next to the $8.3 billion of revenue the company reported for the three months ended September 30, 2014.

However, deals like this enhance Enbridge’s already strong reputation in the region; its pipelines already carry about 40% of the natural gas produced in the Gulf’s deeper areas. The new line should start up in 2018.

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CAE INC., $14.64, Toronto symbol CAE, is our Stock of the Year for 2015. The stock has gained 3.8% since we made CAE our Stock of the Year for 2014. We feel it’s just getting started and has many years of growth ahead. That’s because the company is in a strong position to profit from several trends that are just beginning to take shape. For one, airlines will have to hire more pilots in the next few years as existing ones retire. As well, global air travel volumes should rise 5% annually for the next 20 years. Both of these developments should boost demand for new pilots and increase enrolment at CAE’s flight schools....

ENBRIDGE INC. $55.52 (Toronto symbol ENB; Shares outstanding: 848.8 million; Market cap: $47.5 billion; TSINetwork Rating: Above Average ; Dividend yield : 3.4 % ; www.enbridge.com) has announced a major reorganization and hiked its dividend by a third. The company plans to transfer its pipelines to 19.9%-owned affiliate Enbridge Income Fund Holdings Inc. (Toronto symbol ENF). This company owns 42% of Enbridge Income Fund (Enbridge Inc. owns the remaining 58%), which holds a variety of businesses, including oil and gas pipelines and solar and wind farms. Under the plan, Enbridge will transfer pipelines that pump oil sands crude to the U.S., along with wind farms in Alberta and Quebec, to Enbridge Income Fund. In all, these assets have a book value of $17 billion. To put that in context, Enbridge’s market cap (or the value of all of its outstanding shares) is $47.5 billion....

TIM HORTONS INC., $96.97, Toronto symbol THI, shareholders will vote on the friendly takeover offer from BURGER KING WORLDWIDE INC., $34.81, New York symbol BKW, on Tuesday, December 9, 2014. If the deal is approved, Tim Hortons investors will have a number of options: They can sell their shares on the Toronto exchange and receive the current trading price of $96.97 (less brokerage commissions). If they don’t do that, they can opt for one of the three choices below by notifying their brokers no later than 5:00 p.m. ET on Tuesday, December 9, 2014....

ENCANA CORP. $21.00 (Toronto symbol ECA; Shares outstanding: 741.0 million; Market cap: $15.6 billion; TSINetwork Rating: Average; Dividend yield: 1.4%; www.encana.com) continues to sell less important natural gas properties as it shifts toward long-lasting projects that mainly produce oil and natural gas liquids, such as butane and propane. The company recently agreed to sell most of its natural gas properties in central Alberta’s Clearwater region for $605 million (Canadian). That’s equal to 83% of its second-quarter cash flow of $656 million U.S., or $0.89 U.S. a share. The company expects to complete the sale in the first quarter of 2015. The cash will help Encana pay for Texas-based oil producer Athlon Energy (New York symbol ATHL), which it recently agreed to buy for $7.1 billion U.S., including Athlon’s $1.15 billion U.S. of debt. Encana should complete this purchase by the end of 2014....

We still think investors will profit most—and with the least risk—by buying shares of well-established, dividend-paying stocks with strong business prospects.

These are companies that have strong positions in healthy industries. They also have strong management that will make the right moves to remain competitive in a changing marketplace.

Stocks like these give investors an additional measure of safety in today’s volatile markets. And the best ones offer an attractive combination of moderate p/e’s (the ratio of a stock’s price to its per-share earnings), steady or rising dividend yields (annual dividend divided by the share price) and promising growth prospects.

Here are 20 stocks we think meet those criteria:

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