Spectra Energy Corp. (NYSE:SE)

M* Dividend Builder pick

Just looking for feedback

its natural gas... need we say more?

OUTPERFORM

Significantly higher margin with a much lower P/E than most others in the industry, nice dividend yield, and natural gas is going to be more and more popular as a fuel choice in the near future.

babo

As a long term player, I'm bullish on financially healthy companies in the natural gas arena... such as Spectra. Must be willing to hold for 3+ years. Natural gas production will (already has) fall off as companies move to oil production. Over time, natural gas demand will return coupled with low supply (due to lower production over the near term (1-3 years) future)... naturally bringing the price back up for natural gas... and the foolish investor will win.

Five times industry average earnings.

From the roundtable recommendation:

Trading with a price-to-earnings ratio in the mid teens, Spectra is not outrageously expensive, even before we consider any future energy shifts toward natural gas. And with a 3.8% dividend yield, you get paid well above overall stock market yields to wait for that future to arrive.

Spectra Energy is decently priced for the present, smartly positioned for the future, and pays you well to wait for that future to arrive. When it comes to energy stocks, what's not to love about Spectra?

Covestor Model Manager SWAN-asset management sold SE in his Christian Agape Hedged Equity Covestor Model ( http://covestor.com/SWAN-asset-management )

100

A great natural gas play. Good dividend (4.4%) with an expressed desire to increase it. Expanding rapidly, adding additional storage capacity and transportation lines. Investing in upgrading infrastructure which is expected to increase margins in the long run.

In a word - "income". Dividends and pipelines are not required to go together, with Spectra Energy, they do. I realize that CAPS is about outperforming the market. At the moment, I'm looking for stable companies that will provide a stable (or growing) dividend. I want ROI that I can view in an account--brokerage or bank.

100

This pick is for the dividend and because even though the economy is lagging, it must eventually pick up and energy will be in demand and responsive to the inflation that will come.

Pipelines are steady income. Dividend will provide support to price.

Decent P/E and price-to-book ratios, a healthy dividend, and a good chance natural gas will become more important in the coming years despite whatever supply glut may currently exist.

Natural energy stocks = win. And SE is a well-managed company. And of course, there are the dividends. Buy and hold.

They are doing a lot of things right.