enbridge

ISHARES S&P/TSX 60 INDEX FUND $18.50 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets.

The index mostly consists of high-quality companies. However, as the fund must ensure that all sectors are represented, it holds a few stocks we wouldn’t include.

The index’s top holdings are Royal Bank, 7.8%; TD Bank, 6.7%; Bank of Nova Scotia, 6.0%; Suncor Energy, 4.6%; Bank of Montreal, 3.6%; CN Railway, 3.6%; Potash Corp., 3.3%; Enbridge, 3.1%; Trans- Canada Corp., 3.0%; BCE Inc., 3.0%; CIBC, 2.9%; Canadian Natural Resources, 2.9%; Barrick Gold, 2.9%; Goldcorp, 2.6%; Manulife Financial, 2.3%; Cenovus Energy, 2.2%; and Telus Corp., 1.9%.

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iShares S&P/TSX Canadian Dividend Aristocrats Index Fund ETF, $23.47, symbol CDZ on Toronto (Shares outstanding: 36.9 million; Market cap: $866.0 million; ca.ishares.com), seeks to replicate the performance of the S&P/TSX Canadian Dividend Aristocrats Index. The ETF’s MER is 0.60%, and it yields 3.2%. The S&P/TSX Canadian Dividend Aristocrats Index only includes stocks or trusts that have increased their dividends every year for five years—although it has now changed that to include stocks or trusts that have maintained the same dividend for a maximum of two consecutive years within that five-year period. That means the index excludes a number of sound companies that pay dividends but haven’t increased them every year, including three of Canada’s big-five banks. The ETFs top 10 holdings are AGF Management, 6.4%; Atlantic Power, 4.6%; AG Growth International, 3.8%; Reitmans (Canada), 3.2%; Transcontinental Inc., 3.1%; Exchange Income Corp., 2.8%; IGM Financial, 2.6%; Enbridge Income Fund Holdings, 2.6%; Bird Construction, 2.3%; and Keyera Corp., 2.3%....

Most stock markets have risen lately. But as always, they remain subject to unexpected downturns. Even so, we feel 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. Prices are quoted in newspaper stock tables and online. You must pay brokerage commissions to buy and sell ETFs, but their low management fees still give them a cost advantage over most mutual funds....

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....