enbridge

Most stock markets have risen lately. But as always, they remain subject to unexpected downturns. Even so, the long-term outlook is for higher stock prices.

One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio.

ETFs trade on stock exchanges, just like stocks....

CANADIAN PACIFIC RAILWAY $114.75 (Toronto symbol CP; Shares outstanding: 173.4 million; Market cap: $19.9 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.cpr.ca) has announced that it will let U.S.-based Phillips 66 (New York symbol PSX) use its tracks to transport crude oil from North Dakota’s Bakken shale region to a refinery in New Jersey....

VERESEN $11.97 (Toronto symbol VSN; Sharesoutstanding: 197.5 million; Market cap: $2.4 billion;TSINetwork Rating: Average; Yield: 8.4%) ownspipelines, power plants and natural gas processingfacilities across North America. One of its majorholdings is 50% of the Alliance gas pipeline, whichruns 3,000 kilometres between Chicago and Fort St.John, B.C. Enbridge owns the other 50%. Thecompany also owns the Alberta Ethane GatheringSystem, and Veresen and Enbridge together hold85.4% of the Aux Sable natural gas liquids (NGL)plant.

In December 2011, Veresen paid Encana Corp.$920 million for the Hythe/Steeprock natural gasgathering and processing complex in the Montneyregion of B.C. and Alberta. Encana also signed along-term deal to buy most of this facility’s gas.

In the quarter ended September 30, 2012, cashflow rose 12.9%, to $61.4 million from $54.4 milliona year earlier. Cash flow per share fell 6.1%, to $0.31from $0.33, on more shares outstanding.

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ENBRIDGE INC. $43 (Toronto symbol ENB;Conservative Growth Portfolio, Utilities sector;Shares outstanding: 799.9 million; Market cap: $34.4billion; Price-to-sales ratio: 1.4; Dividend yield: 2.9%;TSI Network Rating: Above Average;www.enbridge.com) has bought 50% of the Massifdu Sud wind project in Quebec. This is the company’s second wind power investment in that province.

Enbridge paid $170.0 million for its stake in this facility. That’s equal to 63.2% of the $269.0million, or $0.34 a share, that it earned in the three months ended September 30, 2012.

Wind farms don’t make money on their own, but operators profit from subsidies. This project has a20-year deal to sell its power to Hydro-Quebec.

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PLEASE NOTE: Next week, Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, will reveal its #1 pick for 2013. SHAWCOR LTD., $40.88, Toronto symbol SCL.A, plans to convert its class A subordinate voting (one vote per share) and class B multiple voting (10 votes per share) shares into a single class of common shares (one vote per share). The company makes sealants and coatings that keep oil and gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths....

ENBRIDGE INC. $43 (Toronto symbol ENB;Conservative Growth Portfolio, Utilities sector;Shares outstanding: 799.9 million; Market cap: $34.4billion; Price-to-sales ratio: 1.4; Dividend yield: 2.9%;TSI Network Rating: Above Average;www.enbridge.com) has bought 50% of the Massifdu Sud wind project in Quebec....

Growth by acquisition can be risky. Newlypurchased companies may develop unforeseen problems,especially in an unsettled economy. ButPembina has lowered that risk with its latest deal bypurchasing a rival in a business where it’s already aleader. Meanwhile, Veresen aims to add plants withlong-term contracts already in place.

PEMBINA PIPELINE $28.71 (Toronto symbolPPL; Shares outstanding: 292.3 million; Market cap:$8.4 billion; TSINetwork Rating: Average; Dividendyield: 5.6%; www.pembina.com) owns pipelinesystems that transport half of Alberta’s conventionaloil production, 30% of the natural gas liquids(NGLs) produced in western Canada and virtually allof B.C.’s conventional oil output.

In the quarter ended September 30, 2012, Pembina’srevenue rose 171.2%, to $815.3 million from$300.6 million a year earlier....

RIOCAN REAL ESTATE INVESTMENTTRUST $27.80 (Toronto symbol REI.UN; Unitsoutstanding: 297.3 million; Market cap: $8.3 billion;TSINetwork Rating: Average; Dividend yield: 5.1%;www.riocan.com) is raising its monthly distributionby 2.2% with the January 2013 payment, to $0.1175a unit from $0.115.

The new annual rate of $1.41 yields 5.1%....

ENBRIDGE INC. $39.81 (Toronto symbol ENB; Shares outstanding: 796.9 million; Market cap: $31.7 billion; TSINetwork Rating: Above A v e r a g e ; D i v i d e n d y i e l d : 2 . 8 % ; www.enbridge.com) has formed a new joint venture with Pennsylvania-based Canopy Prospecting Inc.

This new firm, called Eddystone Rail, will build and operate a $68-million railway and pipeline system. These new joint-venture assets will ship crude from Canopy’s shale oil property in North Dakota’s Bakken region to refineries near Philadelphia.

Enbridge will own 75% of this joint venture, and will operate it. The project is forecast to begin operating in the third quarter of 2013.

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ENBRIDGE INC. $40 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 799.9 million; Market cap: $32.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.enbridge.com) wants to reverse the flow of its oil pipeline in southern Ontario, which would let it pump oil to Montreal. The company also aims to increase the line’s capacity by 25%. Regulators must still approve this plan.

Reversing the flow will make it easier to pump oil from western Canada to refineries in Ontario and Quebec. Shipping more oil to eastern refineries will also improve Enbridge’s long-term prospects if regulators reject its proposed Northern Gateway pipeline, which would pump oil from Alberta to Kitimat, B.C.

Enbridge is a buy.

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