Q: Hi Team,
I have a position in PPL and would lean towards switching to TRP since I see more growth in the name at the current valuation.
I owned ENB in the past mostly for its high dividend yield. Would you favor a switch in TRP or ENB and why?
Thank you !
I have a position in PPL and would lean towards switching to TRP since I see more growth in the name at the current valuation.
I owned ENB in the past mostly for its high dividend yield. Would you favor a switch in TRP or ENB and why?
Thank you !
5i Research Answer:
PPL earnings are expected to go from $2.66 to $3.04. TRP earnings are expected to decline slightly. We consider PPL to be the 'better' company vs TRP and with faster growth expected we would not be interested in switching. We think ENB/PPL would be a good combo within the sector.