Pembina Pipeline Corp (PPL.TO)

Possible takeover target? There is a possibility of consolidation because some of the mid-streamers have more growth opportunity with great longevity in their projects. The problem is, they are not inexpensive, so it would be an expensive acquisition.

This is a midstream operator. The acquisition they announced last week is positive for the company. She does see cash flow growing. They have a lot of projects in place and they are in the right space. Sees mid-single digit dividend growth for the next few years.

He sold too early. It is a very good company and very well run. If he owned it from a low price he would take some off the table because eventually the search for yield will end. You could hold it for the dividend currently. He has TRP-T.

Convertible preferred. You still get the yield and there is the option value. He would not sell unless you had a negative view of the company.

(A Top Pick Aug 15/13. Up 68.29%.) This is a core position for him.

Reported earnings recently and beat the average consensus by 10%. It is in the right space of energy infrastructure. A quasi-utility. Expecting distributions to rise through 2015. Have $5 billion in secured growth and another $2 million that is expected. Dividend yield of 3.51%.

Pipe lines will never collapse. They are expensive, though. He thinks we will stay with long term low interest rates so these guys will remain expensive. Prefers TRP-T.

Stay with it. It has done well, yield of 3.5%. Don’t buy here, but wait for a pullback. They are well positioned as a pipeline and as a mid stream operator. There is a need for their services.

Really likes this name as with many smaller pipeline names. It is hard to say buy more because valuation is so stretched in this name. It is a defensive holding and benefited a lot from geopolitical uncertainty. Take some money off the table.

These pipelines are still very good dividend growth stories. He expects mid to high dividend growth for this company. They have a lot of CapX growth ahead of them, which is really underpinned by “take or pay” contracts. The only concern he has is the valuation. If you have a longer-term perspective, what do these contracts get revalued at when they come up for renewal?

Stretched in terms of valuation. To protect yourself from increases in interest rates, look for demonstrable ability to increase dividends, which this one has. But this one has much more commodity exposure compared to the others.

(Market Call Minute.) An absolutely stellar performer. Pretty much fully priced right now but still a nice yield. If it drops, people should buy it.

This company has had a great run in the last 5 years. Really likes the businesses they are in. The midstream business especially has been a good one for them. Valuation is a bit rich, but the dividend is still hovering around 4%.

Well-run, well-financed, well-capitalized and has a good solid predictable cash flow. Pays a good sustainable dividend. The caveat is that the interest rate shock is looming out there somewhere. It is wholly possible that a US midstream player takes you out.

This is in an area that she really likes. Energy infrastructure is one of the strongest growth areas right now. In the shift in the basin from dry gas towards natural gas liquids, there is a whole slew of infrastructure needs that come along with it. This company is exceptionally well-positioned in that they have basically assets across that entire value chain. She feels their growth is poised to continue and prospects look good for these companies for the next number of years.