Both these utilities offer exceptional yields

Article Excerpt

Most of Pembina’s pipelines operate under long-term contracts, with Algonquin’s renewable energy projects also selling their power under long-term government-guaranteed agreements. That helps lower risk for both firms in today’s uncertain economy. Meanwhile, their investors tap high, sustainable yields. While that adds to the appeal of Pembina and Algonquin, it also supports their share prices. PEMBINA PIPELINE, $28.26, is a buy. The company (Toronto symbol PPL; Shares outstanding: 549.8 million; Market cap: $15.9 billion; TSINetwork Rating: Average; Divd. yield: 8.9%; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil. Investors also gain exposure to Pembina facilities that extract, process and store natural gas. In December 2019, the company acquired pipeline operator Kinder Morgan Canada for $2.3 billion. In addition, Pembina paid the firm’s U.S. parent, Kinder Morgan, $1.6 billion for the U.S. portion of the Cochin pipeline. Lower oil prices hurt revenue for Pembina’s marketing division in the quarter ended June 30, 2020. However, the company’s overall revenue, following the Kinder Morgan…

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