Stock price when the opinion was issued
PPL is up 4% this year and 25% over 52 weeks. It's 18X earnings with a 3.23% dividend that has shown decent recent growth. Debt is high as is common in the sector, but OK earnings growth is expected over the next two years. Cash flow is high and stable, though we would like to see higher free cash flow conversion. The share count has declined over the past six years with buybacks. All in, we would consider it OK. Fundamentals and sector outlook are fine. It is priced well. We would not expect huge growth here, but we would consider it decent for income and potential growth over time.
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It is the third largest mid-streamer in Canada. He owns all three but considers this one the most attractive of them. Has the largest infrastructure in the Montney region. It is positioned to participate in the increase of LNG exports from the BC coast. Its dividend is 5 1/2% with a payout ratio that is more conservative as well as having a healthier balance sheet than the other two. It is the same price as a year ago. Buy 13 Hold 6 Sell 0
(Analysts’ price target is $60.01)Still her favourite pipeline, especially at these levels. Best growth trajectory, and in best strategic position to handle growth in nat gas shipping with LNG Canada. Alliance Pipeline pricing has been an overhang. This is the one to own based on dividend growth, yield, and capex plan.
With the idea of building income in a portfolio. Out of the spotlight, but with a catalyst. Everything is bad news around this name. Alliance Pipeline is a very special asset going from Alberta to Chicago area. Contracting issues right now, and stock's slid on the uncertainty. Those issues are fixable 1-2 years from now, it's just not known right now what the fix is.
High quality, lots of prospects. Doesn't issue shares as much as other companies, business plan is tight. Can incrementally grow over the next few years. Might actually drop another $2. He put one leg in, would put another one in if it dropped. Yield is 5.7%.
Energy infrastructure in Canada is one of the great areas to invest in. Fits in well with natural gas being moved east--west. Under pressure in last year due to tolling on Alliance Pipeline, but that's more than factored in. Lowest valuation of the group, so more potential for growth. Yield is 5.60%.
Canada's realized it needs to change some of its behaviour, and part of that includes energy infrastructure.
Macro environment is tough for energy and energy infrastructure. 200-day MA starting to trend lower, not a fantastic sign. Regulatory environment isn't that helpful either. Nice yield of 5.8%, which will probably remain steady going forward.
Not sure that government's new openness to exporting energy gives him optimism, as the stock price isn't reflecting that.
Should benefit from the energy boom. Has held for 5 years, last year hasn't been the best. Can't pinpoint why it's down, but looks good fundamentally. Loves the improving ROC; used to be 5-6%, but now up to 9% (pretty good for a utility). Palatable valuation at 11x EV/EBITDA.