Pipeline Pessimism Looks Overdone Enbridge, Transcanada Still Pumping Out Profits

It’s been a miserable year for shareholders of Canada’s two largest pipeline companies. As of June, Enbridge Inc. is down about 20% on the year and TransCanada Corp. is down 11%. For long-term investors seeking income, however, the downturn represents a buying opportunity. Investors fear higher interest rates will hurt both companies, which have borrowed heavily to finance growth. As well, investors worry that more pain might be inflicted by the effects of a U.S. Federal...