TSE:PPL

Pembina Pipeline Corp (PPL.TO)

68.11
+0.25 (0.37%)
as of Aug 12, 2026, 7:59:25 pm Market Open.
1166 watching
0
Investor Insights
star iconAug 12, 2026, 12:00 am

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.

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Consensus
Buy
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Valuation
Fair Value
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Similar
ENB
DON'T BUY

Outlook for Pembina in fulfilling take-or-pay contracts with clients. That's exactly the concern behind the stock going down. That's the risk. It's like Chorus Aviation's relationship to Air Canada (though AC has a strong balance sheet and is well-positioned). PPL was trading at a pricey 20x EBIT to EBITDA. Pays a big, growing yield at a reasonable payout ratio, assuming they can maintain cash flow. The market is determining how risky that is. PPL has lost its utility-like premium and trading down. Valuation is cheaper, but it's becoming volatile. Let the dust settle before considering this.

DON'T BUY
It's more defensive at this volatility time of year, but anything energy today was massacred. PPL crashed through support and its 200-day average. Today was horrible. PPL got crushed. Avoid. Oil needs to rise above $40 for oil stocks to have a chance.
PAST TOP PICK
(A Top Pick Dec 16/19, Up 7%) Tremendous growth potential, an income pick with a strong dividend. His buy price is just under $50.
PAST TOP PICK
(A Top Pick Nov 14/19, Up 12%) Down only 1.37% on this sell-off day. It's a steady-eddy. It's been trending sharply up since December. He's still buying it.
BUY
A dividend play. He likes it and owns the preferred shares. The 6-month outlook is positive. Pays a good 4.7% dividend.
PAST TOP PICK
(A Top Pick Feb 13/19, Up 16%) Great income stock. Continues to increase the dividend of 4.8%. Very well placed in western Canada, also in the US. Can grow its cash flow by mid-single digits each year.
BUY

Suncor vs. Pembina Investor sentiment for oil is very weak, but Suncor is among the better performers in the last decade because their Oil Sands assets have such a long life that they don't have to keep investing money each year to maintain that production. Ultimately, Canada needs to see takeaway capacity to improve. He owns Pembina which is not as directly effected by the oil price. Suncor is an oil play; Pembina is an income play. Either one is fine.

BUY
Safe dividend? Yes, very. PPL has take-or-pay contracts with producer, which are guaranteed payments. Management does a good job keeping risk low. They just made an acquisition, so their balance sheet is a little higher than usual, but this will come down in coming quarters. Their purchase in strategic--two pipelines and a storage facility. A very safe stock, despite a little volatility.
PAST TOP PICK
(A Top Pick Nov 22/19, Up 7%) Bit of overhead resistance now. If it starts to fail at current prices, they may have to ditch it. He's keeping an eye on it.
BUY

Kinder Morgan sold 5% of PPL shares, then the stock went up--so that overhang is now gone. Also, PPL just released details of their new petrochemical project, which helps de-risk PPL. That's why this stock jumped $2. Dividend is growing by 6%. He expects 8% free cash flow per share growth. PPL is a good, growing name with new projects. The whole sector is expensive though. A fine name overall at the current price.

COMMENT

He owns ENB and TRP instead. He sold this to reduce his exposure in the area. Nothing wrong with the company, he just sees better dividend and capital growth opportunities with the others. Yield 5.3%

PAST TOP PICK
(A Top Pick Nov 22/19, Up 3%) Bought this as a defensive move. Pays a 5% dividend and won't move down too much if there is a market pullback.
WAIT
Better than IPL. He's waiting for a breakout above current levels, but more level it will stall before rising in February-March (due to a market pullback, he predicts). Be patient.
TOP PICK
It is a great way to play energy. It has had a long base pattern. It pays a nice dividend. They are adding propane capacity. He expects the share price to accelerate. He expects the dividend to increase. (Analysts’ price target is $54.93)
TOP PICK

A well-run energy infrastructure storage name. They closed the Kinder Morgan Canada purchase today. Reasonable growth ahead and trades at an attractive valuation at 10x cash flow. It pays over a 4% dividend yield. (Analysts’ price target is $55.26)

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