
TSE:PPL
This summary was created by AI, based on 46 opinions in the last 12 months.
Pembina Pipeline Corp (PPL-T) has garnered positive reviews for its robust dividend yield of around 4.5% to 5.5% and a solid pipeline of growth projects, particularly with potential developments related to LNG in Western Canada. Analysts appreciate its stable cash flows derived from contracted revenues, which provides a safety net for investors. Despite the favorable positioning and growth prospects, some experts express caution regarding current valuations and potential market volatility. A number of analysts highlighted PPL's strong management and infrastructure quality, making it a reliable choice for income-focused investors, though some suggested it may be fair-priced or even slightly overvalued at this moment, recommending strategic entry points. The sentiment suggests a buy in the long-term but with a cautious approach to current pricing levels.
Keyera vs. Pembina He owns both. Keyera: pays a slightly higher dividend, but also slightly riskier, due to its mix of liquids and gas processing, so probably more earnings volatility short-term. Pembina is a pipeline play with operating cash flow around 9-10x. They were resilient in the downturn. What's good about both is that they are sensitive to volumes, not the oil price, especially Pembina. The dividends are safe and earnings resilient. If the stocks do nothing, at least both pay more than 8% in dividend yields.
It had a lot of growth ahead, then the pandemic threw that into question. It's waiting on the future demand for energy and pipelines. The monthly dividend is safe as long as contracted players continue to pay, but the risk is in those contracts voiding and defaulting. This applies to peers like Keyera. PPL is more diversified and bigger vs. its peers. He's picking away at it, but this is a volatile space. Oil stocks are grinding higher, though, as the WTI price keeps rising and shale oil is not coming back and Canadian production is flatlining. Buy at low-$30/high-$20s. Hold at mid-$30s and hope things will normalize.