Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas storage and transportation specialist Spectra Energy (NYSE: SE) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Spectra's business and see what CAPS investors are saying about the stock right now.

Spectra facts



Market Cap

$16.5 billion


Oil and gas storage and transportation

Trailing-12-Month Revenue

$4.94 billion


CEO Gregory Ebel

CFO John Reddy

Return on Equity (average, past 3 years)



$130 million / $11.34 billion

Dividend Yield



El Paso (NYSE: EP)

Enterprise Products Partners (NYSE: EPD)

Williams Cos. (NYSE: WMB)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 813 members who have rated Spectra believe the stock will outperform the S&P 500 going forward. These bulls include Scottmacd33 and baidewei.

Late last year, Scottmacd33 tapped Spectra as an attractive income opportunity:

A great natural gas play. Good dividend ... 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 fact, Spectra boasts a robust three-year average operating margin of 31.7%. That's higher than that of El Paso (12.2%), Enterprise Products (6.3%), and Williams (18.8%).

CAPS member baidewei elaborates on the bull case:

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 [return on investment] that I can view in an account -- brokerage or bank.

What do you think about Spectra, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Spectra and Enterprise Products are Motley Fool Income Investor picks. The Fool owns shares of El Paso. Try any of our Foolish newsletter services free for 30 days.

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