Pembina Pipeline Corp (PPL.TO)

With the idea of building income in a portfolio. Out of the spotlight, but with a catalyst. Everything is bad news around this name. Alliance Pipeline is a very special asset going from Alberta to Chicago area. Contracting issues right now, and stock's slid on the uncertainty. Those issues are fixable 1-2 years from now, it's just not known right now what the fix is. 

High quality, lots of prospects. Doesn't issue shares as much as other companies, business plan is tight. Can incrementally grow over the next few years. Might actually drop another $2. He put one leg in, would put another one in if it dropped. Yield is 5.7%.

Yields 5.6% with a reasonable payout ratio but the cash flow is not moving enough to increase the dividend. He held it but moved into a gold stock for better returns. On pipelines in general, there are not any in their 'OK to buy list'. 

Still her favourite pipeline, especially at these levels. Best growth trajectory, and in best strategic position to handle growth in nat gas shipping with LNG Canada. Alliance Pipeline pricing has been an overhang. This is the one to own based on dividend growth, yield, and capex plan.

PPL is up 4% this year and 25% over 52 weeks. It's 18X earnings with a 3.23% dividend that has shown decent recent growth. Debt is high as is common in the sector, but OK earnings growth is expected over the next two years. Cash flow is high and stable, though we would like to see higher free cash flow conversion. The share count has declined over the past six years with buybacks. All in, we would consider it OK. Fundamentals and sector outlook are fine. It is priced well. We would not expect huge growth here, but we would consider it decent for income and potential growth over time.
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It is the third largest mid-streamer in Canada. He owns all three but considers this one the most attractive of them. Has the largest infrastructure in the Montney region. It is positioned to participate in the increase of LNG exports from the BC coast. Its dividend is 5 1/2% with a payout ratio that is more conservative as well as having a healthier balance sheet than the other two. It is the same price as a year ago.           Buy 13  Hold 6  Sell 0

Loves it. Income name mainly, with some earnings growth. Probably the worst performer of the group over the last year. Does have midstream infrastructure, so assets aren't as bulletproof as those of an ENB. ENB is always his first choice, though PPL has better long-term growth outlook. He'd buy here.

She owns it for the dividend of 5 1/2% and cash flow. Has a 90% payout ratio. It has renewed it's share buyback and increases its dividend. Pipelines are cash flow machines. She sees 15% per share growth in 2025. Fundamentally it scores 8 out of 10 and valuation 9 out of 10.

PPL fell recently on news of lower tolls, but this of course comes with the territory of a regulated business. Considering its valuation, stability, cash flow and dividends, we would be comfortable buying a full position for income primarily and some long term growth potential.
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Integrated across the entire value chain, from well head to end user. Earns revenue every step of the way for gas and oil molecules. 80-90% of earnings are contracted, and that's what the dividend is based on. Working on really big (for them) LNG export facility off coast of BC. 

Likes growth. Good operator, very little commodity price exposure, consistent earnings, very safe dividend. Long-term buy and hold. Yield is 5.4%, and the dividend continues to rise.

It holds a dominant position in the natural gas and LNG market. It has less leverage than some other pipelines and is self-funding from free cash flow. It has entered into a joint venture for a data base to be built on their land. Has a good dividend of 5 to 5 1/2% and the risk/reward is quite attractive. A comment was made that the telecoms are lagging even with falling interest rates.

Canadian infrastructure name. She owns for income in client portfolios. Robust business model. Often has long-term, take-or-pay contracts; visible cashflow stream. Guided that it can grow EBITDA (cashflows) by single digits over next few years. She'd expect dividend increases to reflect that. 

Stock's pulled back with underlying commodity prices. Should have lower volatility than energy producers. Yield is 5.3%.

Good run second half last year. Then a deeper correction, but it's broken out of the downtrend. Established pretty nice support ~$50. Technically encouraging, looks to be back under accumulation.

It was a top pick last month and he still likes the valuation. There is lots of growth ahead for natural gas since the demand for natural gas is expected to increase in North America in the next 10 years. This is due to the switch from coal to gas, LNG, on-shoring, and the needs of data centres. PPL is well diversified, has good supplies, a healthy balance sheet and good growth. There was a draw-down early in 2025 but he is not sure why.

Great operator over time, nice dividend yield. All pipelines have had a rough patch -- markets correcting plus cloud over tariffs. Tariffs don't really impact it, as it's just a toll road. With Canada's interest rates going lower, and demand generally going up over time, this name should be OK.

Looking at how the chart's acting, you may want to wait for more of a correction to buy. If you're a long-term investor, sit tight, collect the dividend, and you'll be OK.

Growth estimates of pipelines have really gone up in past few months with nat gas prices going higher. More throughput looking likely on Trans Mountain. More incentive in Canada to talk about moving oil East-West and North-South.

Perhaps #4 or 5 on his list of which pipes to buy first. Solid company, valuation more attractive than previously. You won't get hurt with this one.