# Enbridge vs. Fortis - Which One?



## Calgary_Girl (Apr 20, 2011)

I plan on doing a little "shopping" today and need your opinions on Enbridge vs. Fortis. I currently own both; just planning on doing a little bit of a top up today .

Thanks!


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## Financial Cents (Jul 22, 2010)

I own both as well. 

I've got ENB DRIping, that buys me a couple of shares every quarter. 

FTS, not DRIPping yet so I'm using Optional Cash Purchases to top up Fortis when I can.

Tough choice, but a nice choice to have if you have some extra coin to invest


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## Calgary_Girl (Apr 20, 2011)

Thanks FC. Do you have any concerns with some of the pipeline issues Enbridge has been having lately?


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## Homerhomer (Oct 18, 2010)

IMO both fantastic companies however both currently very expensive, especially ENB with p/e of 22. My concern with buying at current levels would be if with higher interest rates in the near future, not only the yield will not be as attractive but with utilities being regulated they may take a bit of time adjusting their pricing.

Fantastic companies, current pricing imo is quite steep.


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## zylon (Oct 27, 2010)

Recent history doesn't show much difference in price.
price comparison

I believe FTS history of growing dividends is better than ENB.

The 5 year return (not including dividends) is 80% for ENB; 38% for FTS.
Going back 10 years, FTS wins out.

I would say, add to the one which is underweighted in your portfolio.


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## Calgary_Girl (Apr 20, 2011)

Thanks for everyones replies! I pulled the trigger on Fortis and now the weighting in the portolio is even between Enbridge and Fortis.


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## Financial Cents (Jul 22, 2010)

@Calgary Girl,

I see you've already pulled the trigger  

Do I have any concerns with some of the pipeline issues Enbridge has been having lately? 

Nah, not really. Such is infrastructure. It eventually breaks down and needs to be fixed or replaced. Long-term, years upon years from now, capital costs will be passed onto the customers. At least if I own a bunch of shares, I won't feel so bad since my dividends will cover my gas bill


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## Mark Rose (Jun 14, 2011)

I'd be more concerned about Enbridge's proposed pipeline to Prince Rupert. I'm sure some of the share price is speculation that it will go through -- it would be immensely profitable if it did.

However, there is massive local resistance in Northern BC. Perhaps not quite as efficient, but an alternative is to ship the heavy crude by rail. The rail is already in place, and building the equivalent capacity in tank cars would only be 1/10th the cost. And the entirety of the line from Fort Mac to Prince Rupert is owned by CN.

CN is already very well positioned to ship resources to Asia (and Asia is very resource hungry, despite the looming temporary dip in the Asian economy). So it's a good bet anyway. It also has strong financials and pays a dividend.

Something to think about. And no, I don't currently own any CNR stock, yet.


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