enbridge

Steady revenue from guaranteed shipping contracts should let Enbridge keep increasing your dividend despite reduced demand for oil because of the pandemic.


Still, the stock is down 18% since the start of 2020 on fears depressed energy prices will continue to hurt shipping volumes for its pipelines....

Based on lots of things we’re looking at, we’re still reasonably sure that stock and ETF prices will be higher in a year or two than they are today. But the market rarely goes straight up or down. Instead we should expect a series of abrupt movements in either direction.


That volatility is all the more reason for conservative investors to keep a high proportion of their holdings in dividend-paying stocks—or ETFs that hold those stocks.


The best dividend stocks provide a consistent dividend yield year after year....

When selecting ETFs, you should look at the stocks they hold but also the methods they use to choose them. All funds use strategies aimed at boosting returns and cutting risk. The two ETFs below (and that in the column to the right) use unique strategies that have both pros and cons.


Meanwhile, the supplement starting on page 79 provides more information on how the most-popular ETFs are constructed....

Emera and Enbridge have bounced back strongly from their March 2020 lows.


We feel both stocks will continue to rise as the pandemic eases and more countries reopen their economies. Their plans to reduce your exposure to fossil fuels will also bolster their appeal with institutional investors....

BANK OF NOVA SCOTIA $56.18, is a buy. The company (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $68.1 billion; TSINetwork Rating: Above Average; Dividend yield: 6.4%; www.scotiabank.com) has agreed to sell its operations in Belize....

ENBRIDGE INC. $41 is a buy. The company (Toronto symbol ENB; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares o/s: 2.0 billion; Market cap: $82.0 billion; Divd. yield: 7.9%; Dividend Sustainability Rating: Highest; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S....

A: The Desjardins Alt Long/Short Equity Market Neutral ETF, $21.15, symbol DANC on Toronto (Shares outstanding: 11.9 million; Market cap: $251.7 million; www.fondesjardins.com), holds a portfolio that consists primarily of pairs of Canadian stocks in the same sector, one of which is a long position and the other a short.

For instance, the ETF recently held a 1% long position in the pipeline utility Enbridge Inc., offset by a similarly sized short position in Pembina Pipeline.

This strategy is aimed at neutralizing market exposure by being long and short in the exact amounts in the same sector when possible....

Central banks are keeping interest rates down in order to counter the negative effects of the COVID-19 pandemic. (The Supplement on page 69 offers you more info on how high deficits and low interest rates in the wake of the coronavirus will affect governments going forward.)


Utilities as a sector will benefit from the lower rates....

TC ENERGY INC., $62.06, is a buy. The company (Toronto symbol TRP; Shares o/s: 940.0 million; Market cap: $58.3 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.transcanada.com) has teamed up with Calgary-based WindRiver Power Corp....

ENBRIDGE INC. $38.63, is a buy. The company (Toronto symbol ENB; Shares outstanding: 2.0 billion; Market cap: $78.2 billion; TSINetwork Rating: Above Average; Dividend yield: 8.4%; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S....