Inter Pipeline (IPL.TO)

Has been a very positive story over the summer. Being a corp. opened them up to a bigger US investor base. They have so many opportunities to enter into new projects. There is an increasing production curve so there has to be a way to get it to market. A great story going forward. Had a good run so you might want to watch to see if it gives some of that back.

Likes the company. When you invest for dividends be diversified enough that any one bad play does not hurt you too much. It is probably a little toward the upper end of the range right now, so he would not put a lot of new money there so don’t use a DRIP program. Prefers ZWU-T

A great, highly rated, interest rate sensitive companies. It will hold up as interest rates pull back.

Just recently raised their dividend by 13%. Expects they will grow their dividend by 8%-9% a year going forward as they have done. Will have about 20% EBITDA growth. Almost 30% of all the molecules from the oil sands flows through their infrastructure, one way or another. Have a lot of recurring revenue. By 2015, less than 10% of the revenue will be specifically exposed to commodity prices, so you are not making a big bet on oil prices.

Still likes this. Just became a Corp so will be paying dividends. Thinks they are very well placed. They are providing transportation to a lot of the oil sands projects. Have projects in place where she can see decent cash flow growth in the next few years. She has a $27 price target. This, along with the yield provides a very attractive return for income oriented investors.

Likes this. Has recently gone through a corporate organization and has moved from being a limited partnership to a corporation. Had becoming difficult to finance growth projects because it was becoming so large. As a corporation, foreign investors, particularly in the US, will be allowed to own it. This will be a great catalyst. Has done a great job and has grown very, very rapidly for many, many years. Good dividend, which has been growing. 4.7% distribution is quite safe.

In a rising rate environment, some of the dividend stocks might be a little bit more sensitive to change than others. You want to look for pipelines that have an expanding rate base going forward. One that will allow them to earn more on whatever the allowed return on equity is going to be in their environment. This is not a bad place to be. Although the dividend is in the middle of the pack, they do have a great base that looks like it should be able to expand. When Kearl comes on stream there will be more cash flow coming. Have just converted into the corporate entity. Feels their payout is sustainable at current levels.

Small pipeline in Alberta that does 40% of the oil sands production. Pays a good dividend and continues to grow the dividend. They continue to add “bolt on” projects that they sign with producers who have to use their whole pipeline, so it is very, very accretive. Just internalized their management contract and converted to a corporation that allows foreign investors to buy the stock. Sees it at $30 in 2 years.

Increase holdings in this one or Buy Pembina (PPL-T)? Between these 2, this would be his 1^st choice but Pembina would certainly be number 2. If you had 2 pipelines, it would be these 2 and would be equal weightings.

When most unit trusts converted into corporations, this company decided to stay as an income trust. To own, you had to be Canadian. Have now decided to become a corporation which should widen shareholder appeal. No reason this can’t be a $30 stock in the future. Yield of 4.77%.

Had an external management team which they are looking to wind up, which is positive. Provides income but there is also a fair bit of growth in this.

Still a fine investment, but you should look at their leverage going forward. The market doesn’t have too much of an issue.

Converting into a corporation. This will be a positive on the margins as there are funds that do not want to buy limited partnerships. Well-positioned for growth in the oil sands. Can increase the distribution 4%-5% over the next few years.

Likes infrastructure midstream type companies. Have transportation, storage and fracing process. These are all good businesses and they don’t have the risk that other pipeline companies have such as delays, big fights, etc. (See Top Picks.)

(A Top Pick August 3/12. Up 18.51%.) One of his top holdings. A diversified energy infrastructure and, because of that, they allow their revenues to come from fee based services. Have a whopping $2.9 billion of CapX projects in the works, which will generate approximately $400 million of additional EBITDA, which is on top of their existing $600 million EBITDA. He sees growth in cash flows and dividends.