Pembina Pipeline Corp (PPL.TO)

It is not a pure energy stock. It has done quite well and its breakout from consolidation is supported by some good purchases. Its dividend of 4.6% is good quality and it has some good growth as well.      Buy 11  Hold 6  Sell 1

PPL is more pure-play pipeline infrastructure. Better dividend yield. Contracted cashflow gives you earnings and revenue visibility. This would be his preference.

ALA gives you a mix of energy infrastructure (~45%) with regulated utilities (~55%). Utility component gives more stability, but lower dividend. He's not a huge fan of utilities unless they're tied to AI infrastructure buildout.

(Note the shortish timeframe.)  Delivering what he wanted. Gives the portfolio some ballast and generates some income.

Great operator. Might need to raise some equity fairly soon, as its recent acquisition will need to be financed. Recent downgrades. Good dividend yield. Good for a long-term investment.

Note:  Owned by his colleague, Christine Poole.

EPS of 78c topped the 74c estimate, while revenue of $1.91B fell short of the $2.11B forecast. EBITDA of $1.08B missed by 1.4% and declined 14%. Revenue dropped 11% and cash flow decreased 4.5%. Guidance was unchanged. Results were clearly mixed, but investors are forward-looking, and consensus projections call for roughly 10% growth this year. The stock remains appealing, particularly in a declining interest rate environment. Unlock Premium - Try 5i Free

Pipelines are consolidating as the Alberta energy industry consolidates into larger producers. PPL is positioned well on energy products that will moved to other markets. Are well-run. Has strong growth ahead.

Is one of her largest holdings. The latest rally is great, though is down today on a downgrade based on valuation. Would buy it today. Maybe is fairly valued now. Was paying a 5.5% and now a 4.8% dividend which is sustainable. Gas volumes are rising. Take or pay contracts fund their dividend; they get paid regardless. Would own this forever. Reasonably valued today.

Likes Canada and likes energy. On the 5-year chart, you can see the consolidation phase in 2022-2023. We're seeing another consolidation phase now -- seems to want to break out. It's a pretty compelling setup. We're close to support, so he doesn't mind buying here. Good risk/reward ratio is compelling at these levels.

What differentiates his team from other analysts is that they know (or think they know) where the puck is going. They won't always be right, but at least they have a roadmap with risk control levels along the way. You get paid a dividend to wait. Yield is 5.25%.

It pays a nice yield, but lacks a catalyst. He prefers natural gas names in energy. Also, what will happen in Venezuela?

Weighting is always a difficult thing. When you have a high-weight position and it works, it's great. Not so much when it doesn't work. Tough for him to comment without knowing an investor's particular situation, but this caller seems to know a lot about the company. That knowledge and insight help mitigate the risk when having a concentrated position. You have to know your stock well, otherwise you get hit by something.

Likes the name, doesn't own (but has in past). His preference in the space is ENB. But when you compare the two, PPL has a really strong growth profile and that's a really big positive. As for the valuation, it's quite reasonable. As is the payout ratio, so not a lot of dividend risk. Tends to trade at a bit of a discount relative to ENB because of its collection of midstream assets (not everything has the same contracted profile as an oil or gas pipeline).

Trades south of 10x cashflow. Well-protected dividend. Good growth. No problem owning this one at all.

Likes it a lot; would've been a Top Pick again, if it weren't a Past Top Pick. Chart shows big spike up in October on data centre news, then came back off because KKR is potentially shopping its stake in JV with Pembina. Market has concerns on floating LNG project, but he doesn't. 

Chart shows it trying to bump through $55, but keeps bouncing off. Once it gets through there, looks pretty good. Growth prospects still good. Meanwhile, clip a 5% dividend while you wait.

They have tons of assets, strategically located. Earnings have been decent. Pays a 5.2% dividend. The Canadian government is now a little warmer towards pipelines.

Draw a line from the pre-fracking peak in 2014 to now, and shares have not moved up much since. A good operator, though.  Best to buy below $50 and sell in the upper $50s.

Her pick in the midstream space, based on its underlying assets. Mix of oil and gas infrastructure. Sees growth in natural gas from LNG Canada and power consumption. Yield is in the 5% range -- not the highest, but still sizeable compared with what you get from the overall market.

ENB came down and tested the 200-day MA at the end of October. In a series of higher highs and higher lows. Really great capital allocator. Has opportunities to grow with changes in political views on pipelines.

PPL also looks good. But if he had to choose one for a main portfolio holding, it would be ENB.