Pembina Pipeline Corp (PPL.TO)

It transports mostly oil and natural gas liquids. It is looking at acquiring the Trans Mountain expansion pipeline across the Rockies as well as an LNG terminal in B.C. The dividend is 6%.

It isn't immune to the oil price though doesn't have a lot of raw commodity exposure. Its pipelines move 2.8 million barrels of oil and it scores 11 million barrels of oil. Also processes 5 billion cubic feet daily of natural gas. 70% of their revenues are take-or-pay contracts, plus 20% are fee-for-service. It's like a toll road. Pays a yield of 6% and trades at 15x PE, in line with peers. PPL is a reliable compounder over time, 8% annual compunded return.

This is set up well for the next decade. They process 25-33% of all natural gas in Western Canada. A massive infrastructure footprint there. They will probably buy (a portion of) Transmountain, and said they won't issue equity or at least very little. Can capital from KKR. A great company. Pays a 6.6% dividend.

Likes pipelines for income, though they've pulled back with the pullback in commodities. Safe, attractive yield.

Currently trading at 10x operating cash flow.
~6% dividend yield that is very safe.
Legacy assets that are hard to replicate.
Not as many problems as other mid-stream companies with cost over runs.
Good time to buy.

ENB has much higher quality assets and better locations. More volatility in earnings. Rumoured to be interested in TMX pipeline, which is an overhang. Good company, dividend safe. He still prefers TRP and ENB.

Not buying for growth clients, but more for a balanced and income-focused portfolio. All the pipelines are down, but he still expects them to raise dividends going forward.

Really good portfolio of long-term assets and income generation. Contracts tend to be take or pay. Going forward, it will be harder, not easier, to build pipelines and infrastructure. Transition to renewables won't happen overnight. His preference is KEY, with its new KAPS program. See his Top Picks.

Doesn't suffer cost overruns on projects like TCE and has a similar valuation to them and Enbridge. Has more of a growth profile. Better than its peers. Pays a decent dividend. Added to it recently. A defensive hold.

Its dividend is safe at a 56% payout ratio. It is executing well and reiterated guidance. It is trading at a reasonable valuation of 15.6 X with OK growth.

Broke out, formed a top, and hasn't broken the neckline. Still OK, as long as it doesn't break $40 significantly by too many days. Pays a dividend, nothing wrong with the stock or the sector, just out of favour. Yield is 6.4%.

Major supplier of oil and gas infrastructure to Western Canada. This will continue to build, as Canada still has surplus energy. Interest rates have gone up, while oil/gas prices have come down. Puts pressure on the stock. Sees no reason to sell. Future is fine for volumes. Dividend will rise slowly. Yield is quite attractive at 6.4%.

Pullback with energy sector makes an attractive entry point. Well positioned in production growth areas. Yield is over 6%, quite safe, and should increase every year. 

Tough business in Canada with protests.
Very good assets with legacy attributes (hard to replicate).
Canada requires large amount of energy - Pembina a service provider of energy demand.
Strong fundamentals.