Pembina Pipeline Corp (PPL.TO)

(A Top Pick Nov 30/12. Up 37.81%.) He continues to add to his holdings. Pipelines are good monopolies to own. They have been solid performers. (See Top Picks)

Whether it is transportation or communication or oil pipelines, it is the infrastructure around it that he likes. These are core holdings in all portfolios. 4.66% yield.

Have about $3 billion worth of projects in the next 4 years. Their base is building. All of these infrastructure companies are doing well because of all the construction, oil sands projects, pipelines, etc.

Inter Pipeline (IPL-T) or Pembina Pipeline (PPL-T)? He doesn’t own Inter Pipline but does own this, which probably gives you your answer. Thinks there is more growth ahead on a percentage basis in terms of EBITDA for this and expects dividends predictably to grow roughly 4% a year.

(A top pick Oct 1/13. Up 1.03%.) Recently had a fantastic earnings report. Chart indicates that it is most definitely not breaking down. He bought it when it was doing a descending triangle. Thinks this one is going to keep going for the foreseeable future. $37 in 12 months is a reasonable estimate.

Recent acquisition really expanded their presence in the US. They have LNG and oil sands also. Continues to like it and sees cash flow growth in the 5-7% range and sees dividend increase continuing. This is a dividend play.

He would be a buyer for new accounts. Good yield and reasonable capital appreciation, totaling 10.2%. Basic business will continue to increase. Just had a change of CEO due to a retirement but there is a first rate team behind them.

(A Top Pick October 1/12. Up 30.31%.) Has $3.5 billion of visible contracted organic growth over the next 3 years. Wouldn’t be buying at these levels. Too expensive at 25X 2014, earnings. Continue to Hold and he would probably sell some Calls against it to generate cash flow above and beyond the 5% dividend...

(A Top Pick August 23/13. Up 6.33%.) He likes most of the pipelines with the exception of TransCanada (TRP-T). Trend line is up. Has just had a breakout. Great-looking chart.

(A Top Pick November 30/12. Up 26.4%.) Likes all of the pipelines, only because they are monopolies. They are cash flow machines.

Pembina (PPL-T) or Inter Pipeline (IPL-T) for growth? Of these 2, this one is actually much more highly valued, so he would tend to go with Inter Pipeline. Neither one of them is dirt cheap.

(Top Pick Sep 06/12, Up 30.66%) Got out to reduce interest rate sensitivity in the portfolio. It is expensive and interest rate sensitive. It will turn around.

Excellent growth profile over the next number of years. Could be expanding by as much is $3.5 billion in terms of their capital program and are very confident they will be able to increase earnings substantially with that. Because of this, they increased the dividend earlier than he had expected. Should be able to increase their dividend by 3%-5% a year over the next 3-5 years. Has a target of $36 over the next year but can grow well beyond that in the next 3 years. Yield of 5.2%.

Inter Pipeline (IPL.UN-T) or Pembina (PPL-T)? She holds both names and likes them both. There are good prospects for dividend increases over time.

Principal advantages and disadvantages of owning the common stock relative to its larger cousins of Enbridge (ENB-T) and TransCanada (TRP-T)? This operates in both Alberta and BC. The problem with the larger ones is that it becomes harder and harder to move the dial on growth. They have to take on bigger and bigger projects. Also, have bigger regulatory hurdles to overcome. You want to own the smaller guys because they can grow easier. This one can fund part of their growth through their cash flow generation whereas the others have to go to market.