Inter Pipeline (IPL.TO)

(Market Call Minute.) Gives you a decent yield. An oily pipeline. There is still some growth but the easy money has been made.

(A Top Pick Nov 15/12. Up 23.51%.) Energy infrastructure and midstream energy infrastructure has been a sector that he has been focusing on for 3-4 years. This has been a remarkably steady performer. There is an oil/gas boom going on all over North America. In order to get that to market, it has to be processed and transported. This company is in the business of transporting liquids, extracting liquids out of natural gas as well as storage. These companies are all growing their cash flows at 8%-10% a year. 8%-10% dividend growth. 4.6% yield.

(Market Call Minute.) Not his favourite among the pipelines but not a bad pick for income.

Really, really impressive company. This one is probably the cream of the crop in pipeline companies. They have lots of plans.

(Market Call Minute) Wait for a pull back to buy.

Very well managed company. Has been looking at this. Their expansion over the next few years is going to contribute to growing earnings. What they have going between the Canexus, Kirby and Kerl is going to generate significant cash flow for them over the next number of years. You could look forward to growing dividends.

Still owns it and has trimmed a couple of times. Yield is good and it looks like it wants to go higher although a lot of the growth is behind it. He might sell it if he needed the cash for another investment.

(Market Call Minute) Increased dividend flow. Contacts looking out 20 years plus likelihood of more contracts.

Looks interesting at this time. Good yield. Fields are depleting faster so gathering lines have to be moved around more often and this benefits these guys. Good, solid, backbone company. Has PPL-T as well and same applies to it.

5.1% yield. Screens very well in his income portfolio. There is some growth and they can increase the dividend next year. This would be an entry point as it built a base and consolidated at this point. Not his favourite, preferring ENB or KEY.

Chart shows a nice long term upward trend. Just recently broke to new highs. Trend is positive, it’s outperforming the market but is probably trading below its 20 day moving average. However, a score of 2 out of 3 is not bad.

If you want long term income returns you have to go to high yielding stocks. Consistent record of increasing dividends. Thinks there are lots more new pipelines or expansions to come. You won’t see massive dividend increases, but consistent with cash flow increases. Half the overall volatility of the TSX. It is something for a broad based portfolio. 4-5% position is recommended.

Could be part of most people’s portfolios. What the government does to tapering could have a lot of impact on yield plays. Add to this on weakness and sell on strength.

You could hold for 10 years. Favours this one. It has outperformed.

Pembina (PPL-T) or Inter Pipeline (IPL-T) for growth? Of these 2, Pembina is actually much more highly valued, so he would tend to go with Inter Pipeline. Neither one of them is dirt cheap.