…and Pembina converts

Article Excerpt

PEMBINA PIPELINE CORPORATION $22.05 (Toronto symbol PPL; Shares outstanding: 164.5 million; Market cap: $3.6 billion; SI Rating: Extra Risk; Dividend yield: 7.1%; www.pembina.com) is the new name of Pembina Pipeline Income Fund following its conversion to a dividend-paying corporation on October 1, 2010. Pembina aims to keep paying $0.13 a month, at least through 2013 (it now yields 7.1%). The fund believes that cash flow from its $440-million Nipisi and Mitsue pipelines, which it expects to start up in mid-2011, will let it maintain its payout. As well, Pembina has tax losses that it can use to delay taxation under Ottawa’s new income-trust tax until 2012. Pembina Pipeline Corporation is still a buy. buy…