Keyera Corp (KEY.TO)

When LNG was being talked in BC three years ago, this company was going to be at the forefront with the liquids processing. He likes management and the current valuation. Yield 5.2%. (Analysts’ price target is $42.60)

Usually take or pay contracts. They are expanding into the US. They raised the dividend last month. Their payout ratio is low. (Analysts’ target: $42.63).

(A Top Pick May 31/18, Up 4%) Still looks good. Could reach $40 by year end. Use $35 as an exit price.

He has been fairly bearish on energy as a whole but KEY-T and SU-T he has liked. KEY-T has gone sideways for the last little while. If you are trading it you can make some money but otherwise it is a yield play. The dividend is safe.

Pays a 4.5% yield which is very safe. It's a mid-stream pipeline company. Oil prices rising should help them.

This is managed very well. They have been recently moving into the US. Their dividend is safe, their payout ratio is below 60%. The stock’s price dropped in response to the rise in interest rates but it has come back up.

(A Top Pick April 10/18 Up 5%) He still likes it. It has also paid out a $0.14 distribution per month. A good way to diversify the portfolio.

A midmarket company that processes and works for energy companies making sure that their product gets to market. Well run business. Made small acquisitions in the US. 5% yield. Good dividend growth potential. Great balance sheet. (Analysts’ price target is $42.02)

Very well-run company. Lot of growth in the mid-stream market in Alberta and Natural Gas processing. He prefers Enbridge Income Fund Holdings Inc (ENF-T) for the dividend yield.

He has been studying it a lot recently. They tend to make interesting arrangements on a fee basis with a number of companies. They have a good balance sheet, good management and are well respected in the industry. It is looking quite attractive.

(A Top Pick January 23/17 Down 6%). He wants to own gas infrastructure for years to come, but there is no sex appeal in holding this now. A year ago it made sense. Going forward he thinks they are in great shape.

A solid base at $32. Fundamentals aren't great but it pays a 5% dividend. Not an oil/gas co. but a midstream distributor and processor. Chart shows a potential to return to $36-37. There's enough trading support since February. A dividend, short-term play with potential to rise a little higher. (Analysts' price target $41.00)

They have a durable cash flow that can compound over a multi-year period. They have 2.5 times debt to cash flow. It is finally really cheap. Low payout ratio, 4.9% dividend. (Analysts’ target: $41.00).

This company ranks 286 in their database and they do not hold it. There is some concern on future earnings. It is a high-yield company with only a 55% payout ratio, so he feels the dividend is safe. Overall, the debt-to-equity ratio looks reasonable and it is a good hold. If oil prices rise, it will appreciate. He thinks there are better opportunities. Yield 5.2%. (Analysts’ price target is $41)

He prefers companies like Keyera to companies like Enbridge. KEY has reasonable level of debt, great cash flow visibility and a growing cash flow stream over time. He also thinks the management team is aligned with shareholders.