
TSE:PPL
This summary was created by AI, based on 49 opinions in the last 12 months.
Pembina Pipeline Corp (PPL) is widely viewed as a stable investment with a good dividend yield, currently around 4.5% to 5.5%. Analysts note that the company is well-positioned in the energy sector, particularly for natural gas infrastructure and potential growth from new LNG projects in Western Canada. The company's solid backlog allows for expectations of rising cash flows and dividends in the coming years. While some analysts express concerns over its current valuation, a significant number still consider it a strong long-term hold, citing its relatively low-risk profile and contracted cash flows that provide earnings visibility. Overall, PPL is recognized for its robust operational strategy and is seen favorably for those seeking income amidst market volatility.
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.