Owns this and Enbridge. PPL is well-positioned in western natural gas, so PPL is well-positioned if European demand for nat gas rises. Good managers of debt and dividends (5.5%) which increases annually.
Best in this sector. Diversified, exposed to western Canadian gas. Pays a 6% yield. Good long-term. Will likely buy the Transmountain Pipeline. A good core business that offers core growth. Why aren't these companies trading at a PE as utilities?
PPL provides key infrastructure to the energy sector in Western Canada. It operates 2.8 mmboed of pipeline capacity along with 11 million barrels of tank inventory and over 100 mboed of rail terminal capacity. It trades at 8x earnings, under 2x book value, and boasts a ROE of 19%. The dividend is great and backed by a payout ratio of 50% of cash flow. We like that cash reserves are growing while debt is aggressively being retired and shares bought back. We recommend placing a stop loss at $41, looking to achieve $52.50 -- upside potential of 18%. Yield 5.7%
Higher interest rates hurt the pipelines to some degree in terms of valuation. Structured debt, not all is floating rate. A good pipeline for growth. Decent dividend yield. Not a bad valuation at 10x operating cashflow.
Core position for him. He maintains around a 4% position. Opportunity for total return over next 10 years of dividend plus capital appreciation is pretty great.
Very strong business. Good share price to buy at.
Excellent prospects and good management.
Large amounts of natural gas exposure.
LNG Canada will be very good for business.
6% dividend is very stable.
Recent market selloff/rising interest rates have impacted share price.
Believes that business model is stable and demand for pipelines not going away.
Too much debt for comfort level.
Prefers TC Energy.
no price target You can buy it at a near-6% dividend with lots of growth ahead. They process gas. With the LNG Canada pipeline coming onstream in 2025-6, natural gas prices are very attractive, so Pembina is in a great spot. Even better if Pembina grows the dividend and the share price rises. Shares have come off from mid-50s into the 40s, so buy now.
Pembina vs. Enbridge He likes pipelines. They're hard to build in Canada, so the value of existing ones is high. ENB's dividend is tremendous. He really likes it. There was concern that their debt was too high and it their dividend was in danger. It turns out to be safe and it slighter higher than Pembina. ENG has a larger and more diversified customer base. Steady and not volatile for income investors. Not sure if they can raise the dividend during inflation, though.
Dividend secure? Likes the pipelines. He'd rank them: ENB, TRP, PPL, and then KEY. Dividend yields are all attractive, and he wouldn't worry about any cuts in the current environment. Good valuation. Still has core growth. Safe place.
Excellent business model with strong management and assets.
Rising energy prices will create further demand for business.
Critical infrastructure that is hard to replicate.
Stock price is undervalued at current price.
Market has not figured out hard to build assets the company already owns.
Excellent company for 2-3 year holding period.
Well managed company.
Current share price is presenting good buying opportunity.
Rising interest rates put pressure on dividend returns (can't raise prices dramatically).
Pembina Pipeline Corp is a Canadian stock, trading under the symbol PPL.TO (previously PPL-T on Stockchase) on the Toronto Stock Exchange (PPL-CT). It is usually referred to as TSX:PPL or PPL.TO
Owns this and Enbridge. PPL is well-positioned in western natural gas, so PPL is well-positioned if European demand for nat gas rises. Good managers of debt and dividends (5.5%) which increases annually.