monthly dividend
PEMBINA PIPELINE $40.02 (Toronto symbol PPL; Shares outstanding: 336.0 million; Market cap: $13.5 billion; TSINetwork Rating: Average; Dividend yield: 4.4%; www.pembina.com) owns pipelines that carry half of Alberta’s conventional oil, 30% of Western Canada’s natural gas liquids (NGLs) and almost all of B.C.’s conventional oil.
Pembina also owns extensive facilities to extract, process and store NGLs.
In the quarter ended December 31, 2014, Pembina’s cash flow per share fell 16.9%, to $0.49 from $0.59. However, that’s mainly because lower oil and gas prices cut volumes and profit margins at its NGL extraction business.
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Pembina also owns extensive facilities to extract, process and store NGLs.
In the quarter ended December 31, 2014, Pembina’s cash flow per share fell 16.9%, to $0.49 from $0.59. However, that’s mainly because lower oil and gas prices cut volumes and profit margins at its NGL extraction business.
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While this split-share company dabbles in call options, investors would be better off buying the bank and oil stocks it holds separately.
Pembina Pipeline and Veresen both trade at high multiples to their per-share cash flow, but both have strong growth prospects and high dividend yields. We think they have gains ahead. PEMBINA PIPELINE $40.02 (Toronto symbol PPL; Shares outstanding: 336.0 million; Market cap: $13.5 billion; TSINetwork Rating: Average; Dividend yield: 4.4%; www.pembina.com) owns pipelines that carry half of Alberta’s conventional oil, 30% of Western Canada’s natural gas liquids (NGLs) and almost all of B.C.’s conventional oil. Pembina also owns extensive facilities to extract, process and store NGLs....
CRESCENT POINT ENERGY CORP. $28.24 (Toronto symbol CPG; Shares outstanding: 443.4 million; Market cap: $12.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 9.8%; www.crescentpointenergy.com) produces oil and natural gas in Western Canada, with a focus on its Bakken light oil development in southeastern Saskatchewan. Its output is 92% oil and 8% gas. In the three months ended December 31, 2014, Crescent Point’s cash flow rose 7.4%, to $572.9 million from $533.3 million a year earlier. The company raised its daily output by 20.5%, which offset lower oil prices and increased its cash flow. Cash flow per share fell 5.2%, to $1.28 from $1.35, because the company issued shares to pay for acquisitions, including $378.0 million for oil properties from Lightstream Resources in September 2015....
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Liquor Stores N.A. Ltd. (symbol LIQ on Toronto; www.liquorstoresna.ca) is North America’s largest private liquor store operator, with 244 outlets. Of that total, 173 are in Alberta, 35 are in B.C., 23 are in Alaska and 13 are in Kentucky.
Liquor Stores’ banners include Liquor Depot, Liquor Barn and Brown Jug.
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Liquor Stores N.A. Ltd. (symbol LIQ on Toronto; www.liquorstoresna.ca) is North America’s largest private liquor store operator, with 244 outlets. Of that total, 173 are in Alberta, 35 are in B.C., 23 are in Alaska and 13 are in Kentucky.
Liquor Stores’ banners include Liquor Depot, Liquor Barn and Brown Jug.
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Big Bank Big Oil Split Corp. is a split-share company with two types of stock: capital shares ($9.32, symbol BBO on Toronto) and preferred shares ($10.21, symbol BBO.PR.A on Toronto).
The company holds shares of the biggest six Canadian banks, plus 10 large Canadian oil and gas and pipeline companies.
Split-share companies typically issue two classes of shares. Usually the capital shares get all or most of the capital gains and losses, as well as variable dividend income, and the preferred shares get a fixed amount of dividend income.
In the case of Big Bank Big Oil Split, the capital shares receive a monthly dividend of $0.05 a share ($0.60 annually), which gives them a 6.4% yield. The monthly dividend has been as high at $0.09, most recently in 2010.
The dividend income the company gets from its portfolio isn’t enough to pay capital and preferred share dividends and management expenses of 1.22%, in addition to providing a return for the capital shares. To make up the difference, the company has to make a profit by trading its portfolio. It also aims to raise its returns by writing call options on the portfolio’s securities.
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The company holds shares of the biggest six Canadian banks, plus 10 large Canadian oil and gas and pipeline companies.
Split-share companies typically issue two classes of shares. Usually the capital shares get all or most of the capital gains and losses, as well as variable dividend income, and the preferred shares get a fixed amount of dividend income.
In the case of Big Bank Big Oil Split, the capital shares receive a monthly dividend of $0.05 a share ($0.60 annually), which gives them a 6.4% yield. The monthly dividend has been as high at $0.09, most recently in 2010.
The dividend income the company gets from its portfolio isn’t enough to pay capital and preferred share dividends and management expenses of 1.22%, in addition to providing a return for the capital shares. To make up the difference, the company has to make a profit by trading its portfolio. It also aims to raise its returns by writing call options on the portfolio’s securities.
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A: Liquor Stores N.A. Ltd., $15.04, symbol LIQ on Toronto (Shares outstanding: 27.3 million; Market cap: $408.4 million; www.liquorstoresna.ca), is North America’s largest private liquor store operator, with 244 outlets. Of that total, 173 are in Alberta, 35 are in B.C., 23 are in Alaska and 13 are in Kentucky.
Liquor Stores’ banners include Liquor Depot, Liquor Barn and Brown Jug.
Alberta privatized retail liquor sales in 1993, prompting Irv Kipnes to found Liquor Depot and Henry Bereznicki to start Liquor World that year. Kipnes and Bereznicki, both Edmonton-based real estate developers, merged their companies and founded Liquor Stores Income Fund in 2004. The fund first sold units to the public at $10 each and began trading on Toronto in September 2004.
Liquor Stores Income Fund converted to a corporation on December 31, 2010, in response to Ottawa’s income trust tax.
The company’s strategy is to offer more choice, typically two to three times more products than its competitors. Liquor Stores lets each location juggle its product mix to meet local tastes.
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Liquor Stores’ banners include Liquor Depot, Liquor Barn and Brown Jug.
Alberta privatized retail liquor sales in 1993, prompting Irv Kipnes to found Liquor Depot and Henry Bereznicki to start Liquor World that year. Kipnes and Bereznicki, both Edmonton-based real estate developers, merged their companies and founded Liquor Stores Income Fund in 2004. The fund first sold units to the public at $10 each and began trading on Toronto in September 2004.
Liquor Stores Income Fund converted to a corporation on December 31, 2010, in response to Ottawa’s income trust tax.
The company’s strategy is to offer more choice, typically two to three times more products than its competitors. Liquor Stores lets each location juggle its product mix to meet local tastes.
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iShares Canadian Financial Monthly Income ETF, $6.99, symbol FIE on Toronto (Units outstanding: 45.0 million; Market cap: $314.6 million; www.blackrock.com), is a balanced fund with 16% of its assets in bonds and 16% in preferred shares. The other 68% is in common stocks. We don’t generally recommend balanced funds, as bonds are unlikely to perform well over the next few years, if only because interest rates will likely hold steady or rise. That means the fund would only earn interest income on its bonds; instead of capital gains, its bond holdings could produce capital losses. The iShares Canadian Financial Monthly Income ETF holds mostly corporate bonds, which expose you to varying levels of risk. Some are almost as safe as government bonds and offer only slightly higher yields. Others offer higher yields but are much riskier....
ENERPLUS CORP. $13.06 (Toronto symbol ERF; Shares outstanding: 205.4 million; Market cap: $2.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.6%) produces an average of 105,591 barrels of oil equivalent a day (56% gas and 44% oil). The company’s properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus shale, which passes through Pennsylvania, New York, Ohio and West Virginia. In the quarter ended December 31, 2014, Enerplus’s production rose 12.1% from a year earlier. That increase, plus higher realized gas prices, pushed cash flow per share up 15.7%, to $1.03 from $0.89. Like ARC, Enerplus will cut spending this year. Its outlays will now total $480 million, down 24.4% from its original estimate of $635 million and 40.8% from $811.0 million in 2014....
ARC RESOURCES $24.16 (Toronto symbol ARX; Shares outstanding: 335.0 million; Market cap: $8.2 billion; TSINetwork Rating: Speculative; Dividend yield: 5.1%; www.arcresources.com) produces oil and natural gas in Western Canada. Its average daily output of 117,986 barrels of oil equivalent is 61% gas and 39% oil. In the quarter ended December 31, 2014, ARC’s cash flow per share rose 3.9%, to $0.79 from $0.76 a year earlier. Realized oil prices fell 12.5%, to $72.49 a barrel from $82.85, but ARC’s production gained 17.0%, and its realized gas prices rose 15.0%. Like many oil and gas producers, ARC plans to cut back on exploration and development spending. This year, the company will devote $750.0 million to this purpose, down from $945.5 million in 2014....