Keyera Corp (KEY.TO)

(Top Pick Apr 12/16, Down 3.13%) This is a good income pick for people. You don’t buy it because the stock price will double. Don’t buy the horses, buy the race track. No matter what, it has to go through a KEY-T facility regardless of whether the price of oil goes up or down.

One of his top picks has better bottom line growth. This is not in a terrible industry and does have some growth, so he thinks it is okay to hold. There are better choices, but there are way worse choices. (See Top Picks.)

A very, very well-run company. The dividend payout ratio is low and it is very well financed. This has been stagnant for about 2 years. Americans love to hate this stock at times. Thinks this company is set to go. You could see it down at $38 again. Depending on your time frame, this is a solid, long term hold. Good dividend growth potential.

He likes this. An extremely well-run company, probably one of the better run companies in the oil/gas sector. Valuation metrics always look a little bit pricey. If this got under $30, he would be tempted to take a fairly good size position.

The chart looks fairly flat over the last year, but this is a safe, stable, midstream/utility type company. You are not going to get any surprises with this company. It will pay you a decent distribution. Dividend yield of 4.2%.

This is all those stocks coming off and where can we still have exposure to this sector and the infrastructure. 4% yield and 50% distribution. It is a really well run business and he wants to own something in the infrastructure space. (Analysts’ Target: $44.73%).

She likes this business model, but prefers Pembina (PPL-T) and Inter Pipeline (IPL-T).

Management is exceptional. It is a natural gas and processing company. Take or pay contracts, with storage. Dividend yield is 4.13%, low payout ratio. (Analysts’ Target: $44.43)

Long-term hold of 10 years? A good company. It is more in the midstream space like Inter-Pipe or Pembina. It has had nice appreciation over the course of the last 6 months, but to him it is fully valued. If you own it, you could probably hold it for 10 years and you would be okay. There are better opportunities to make money in the short term.

Keyera (KEY-T) or Vermilion Energy (VET-T)? He doesn’t own either, but would probably prefer this one, because in this kind of a market they are acquiring a lot of assets at a good price. Vermilion has more of a commodity play in it, and probably has more zip as the commodity patch comes back.

Have done a very, very good job. They have excellent infrastructure assets, and are able to take advantage of arbitrage opportunities. Very opportunistic and, most importantly, they are very, very focused on getting the best bang for their buck. Believes this is one of these plays in “energy land” that you can own over the long-term. The trick is just to know when to own a lot of it.

Great management team. Their business is conservative and their payout ratio is around 50%. They’ve consistently grown the dividend, 15 times since they started as a public company. They grow by taking smaller positions in plants and facilities, adding to those and eventually owning them outright. This allows them to get the experience in owning and running them. Their cost of financing is really low. Dividend yield of 3.9%.

(Market Call Minute.) A good pipeline business, and has proved to be resilient in the face of falling oil prices. A good defensive way to get exposure.

One of the larger midstream businesses. Their specialty is natural gas processing and gathering. On the liquids side they do storage. Management team has been in place for ever. Top, top, top quality. A very conservative team. The payout ratio is 60%. Their latest partnership is with a large producer on building a sour gas processing plant. Dividend yield of 4.01%.

Don’t buy the laggards. It is going to be okay, like a bond proxy. It is not likely to go back to the highs any time soon. Slower dividend growth. Does not expect it to be a strong performer.