Pembina Pipeline Corp

PPL-T

The payout ratio on PPL is about 98%, so there is not a lot of wiggle room. He does not own this one. The company is looking to buy KML. He has a short on this simply because they are already long KML. The balance sheet is better than most pipelines out there. However, it does not score cheaply enough on valuations for him to want to buy today. Yield 5.2%

PPL-T fine holding, but he prefers to hold ENB-T as the yield is 6.5%. Both are good holds. The balance sheets are not stretched. At $50, PPL-T is getting to upper end of his value band.

They beat Q2 and it has a strong balance sheet. They have rich pipelines, and he is modelling 7% free cash flow per share growth. They brought Kinder Morgan that increases their options.

Nice income stock. Pipeline plus midstream operations. Footprint well-placed in western Canada. Recent acquisitions of Kinder Morgan and half a US pipeline. Good capital plan, well funded. Payout ratio is 55%. Mid-high single digit range of increasing cash flow. Increasing dividend. Yield is 4.92%. (Analysts’ price target is $56.18)

ALA-T? He prefers Pembina and has performed much better than ALA. Pembina just bought the Kinder Morgan Canada pipeline and section of a US pipeline. It pays a good dividend. He likes pipelines. It's held up during this volatility.