
TSE:PPL
This summary was created by AI, based on 49 opinions in the last 12 months.
Pembina Pipeline Corp (PPL-T) is widely regarded as a solid investment choice, particularly for income-seeking investors due to its attractive dividend yield, hovering around 4.5% to 5.5%. Analysts appreciate the company's well-positioned assets and healthy project backlog, which bode well for future cash flow and dividend growth. The potential for increased demand tied to new LNG projects in Western Canada adds to its positive outlook. While some experts express caution regarding its current valuation and market sentiment, the overall sentiment is one of confidence in its stability and growth prospects. The stock is seen as a defensive play in the energy sector, especially amidst volatility in oil prices, making it a preferred choice for risk-averse investors looking for steady income and moderate growth.
Pipelines hold the whole energy complex together. Investors do well by owning pipelines. Very solid company. Near term there are challenges and are reflected in share price. Low propane prices, lower volumes. Issues are fixable and investors are paid to wait. Longer term the company is significantly undervalued. Significant growth opportunities. Volumes will improve over time. 3-5% dividend increases starting in couple of years and going for many years. Great yield and growth in cash flows.
Made an acquisition earlier in the year and as a result, there was some slippage from an earnings growth perspective as a result of weaker margins in one of the service businesses that they operate in. Unlikely to turn around in the next quarter. There are some great opportunities for them to continue to build the business but there are some challenges in the short-term. Still one more quarter of potential risk. (See Top Picks.)
Did a propane takeover at a bad time. Earnings disappointed and there was a sell off. 75% recurrent earnings. Growth prospects in the next few years and when propane recovers this winter, they will recover. He has half position.