The Globe and Mail reports in its Tuesday, Dec. 9, edition that RBC Dominion Securities analyst Robert Kwan is sticking with his "outperform" rating on Enbridge. The Globe's Darcy Keith, Tim Shufelt and Luke Kawa write in the Eye On Equities column that the analyst elevated his target to $71 from $65. Enbridge recently announced plans to "drop down" a segment of its Canadian pipelines business into the Enbridge Income Fund and raised its dividend by one-third effective March, 2015. Management signalled that it plans to continue boosting its quarterly payout by an average of 14 to 16 per cent per year through 2018. "Following the asset transfer, Enbridge Income Fund will transform into a high-growth vehicle (10-per-cent target dividend growth rate from 2015-2018) with cash flow growth underpinned by contractually secured new pipeline projects (e.g., L3R, Norlite, etc.) instead of previously possessing a very low core growth rate of roughly 1 per cent augmented by drop downs from time to time." These moves prompted the analyst to raise his estimate for adjusted diluted EPS in 2015 and 2016 by 5 per cent and 10 per cent.