Inter Pipeline (IPL.TO)

Inter Pipeline (IPL-T) or Enbridge (ENB-T)? If she had to choose between one or the other, her preference would be Enbridge. It was held back by the uncertainty of the financing of their capital program and that has now been alleviated. Also, they are more diversified getting into natural gas.

Alta Gas (ALA-T) or Inter Pipeline (IPL-T)? She doesn't have a bias towards one or the other, and you can do either one.

Although he owns this, he would be somewhat interested in sniffing around at Enbridge (ENB-T) as well. There is always a scare of a dividend cut on Enbridge. Both names are pretty solid in his opinion. Dividend yield of 6%.

There is a big catalyst in front of them. They are about to make a decision on a propane dehydrogenation and polypropylene plant in the next quarter. Alberta is awash in propane so there is a glut. It has a 6.3% dividend. 80% of the business is underpinned with take or pay contracts. (Analysts’ target: $29.00).

Trades on an EV to EBITDA at about 11X. Historically it should trade at around 13X. Thinks it is cheap. This is the pipeline from the oil sands. As all the producers in the oil sands increase their output, they are going to have to put it in some pipe. With a 4% yield and a tremendous cash flow, they have the ability to grow the dividend. It has the potential to go higher.

Increased their dividend by about 3.5%. Their results were fine, but have to make a decision on the big $3.1 billion petrol/chemical facility. They want to secure long-term “take or pay” contracts before building it, which will decrease exposure to the commodity price. If you didn’t own this, this would be a chance to build a position. The dividend yield is over 6%.

He really likes this but can’t get there on valuation. A good operator and they’ve done a lot of good things. Earns a decent rate of return for a pipeline company, but is slightly higher than some of their counterparts. It is just out of the range of valuation that he would be willing to pay, around $20.

Inter Pipeline (IPL-T) or Brookfield Infrastructure Partners (BIP.UN-T)? This is primarily all Canadian although they have some assets in Europe. She would encourage Canadians to look outside of Canada, So Brookfield Infrastructure would probably offer more opportunities. She likes them both and they both provide attractive yields.

The yield is quite attractive. It has been hit recently and doesn’t think that makes a lot of sense. They have a lot of optionality in their pipeline system, where they can add volume if projects continue to be built out. The dividend is well covered, and they continue to increase it.

Likes this, but likes others better. He likes the area because it has been forgotten. Energy is probably putting in a bottom. We’ve seen a lot of selling pressure in the oil patch, and thinks all midstream type players should do okay. Dividend yield of 6.5%. (See Top Picks.)

Not a cheap stock, but a great story and pays a great 6.7% dividend yield. Has fallen off because of some issues with interest rates going up, and this is more of a utility stock. (Analysts’ price target is $29.)

This has been caught up on the energy component, even though it has great contracts with bigger oil companies. Doesn’t consider it to be a dramatic high-yielder, so is not concerned about the payout ratio. They have some great, long term contracts, specifically with Imperial Oil (IMO-T). A good portion of it is shipping condensate for the oil sands. Notwithstanding the low energy prices, he doesn’t believe the oil sands projects are going to stop. Condensate will be needed and those contracts are long-term in nature.

Has been out of favour and is the one pipeline he doesn’t own. In the short term, it has limited growth prospects which will impact the dividend growth potential. On a 1-year basis, it doesn’t look particularly attractive relative to a Pembina Pipeline (PPL-T), an Enbridge (ENB-T) and a Trans Canada (TRP-T).

Enbridge (ENB-T) or Inter Pipeline (IPL-T)? Both are out of favour now, but are 2 of the better pipeline stocks you can be invested in. Enbridge tends to be a little more expensive over time, but you are paying for very high-quality management. Both companies have well defined CapX programs going forward. You could probably expect more rapid increases in dividends from Enbridge. One unknown with this company is, will they go ahead with the big petrochemical plant. Both stocks would be vulnerable to a rising rate environment.

This is pipelines as well as midstream operations. A quite well-managed company. Have some big investments planning in their backlog. For now, it provides a very attractive yield of over 7%. They’ve been slowly increasing the dividend over time. If crude oil prices stay down, you may not see the increases we have seen in the past. She definitely feels the dividend is safe.