enbridge

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Enbridge and TransCanada are facing strong opposition to their big pipeline proposals, so they’re focusing on smaller projects instead. This will give both companies more cash for dividends, but we feel TransCanada is the better buy right now. ENBRIDGE INC. $43 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 867.6 million; Market cap: $37.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.enbridge.com) received regulatory approval for its $7.9-billion Northern Gateway pipeline in June 2014. This project would pump crude from Alberta to Kitimat, B.C. From there, tankers would ship it to customers in Asia. However, Ottawa recently banned oil tankers off the northern B.C. coast. Meanwhile, Enbridge is making progress on its ambitious $38-billion growth plan, which includes expanding its oil and gas pipelines and wind farms. The company will finish building these projects between 2016 and 2019....

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%....

Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

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....

Imperial Oil continues to face low oil prices, but its diversified operations make it our top energy stock for conservative investors.