Pembina gives you a solid 5.6% yield

Article Excerpt

Most of Pembina’s pipelines operate under long-term contracts. That helps lower the company’s risk in today’s uncertain economy. Meanwhile, Pembina’s investors tap a high, sustainable yield. That adds to the stock’s appeal and also supports its share price. PEMBINA PIPELINE, $46.20, is a buy. The company (Toronto symbol PPL; Shares outstanding: 554.3 million; Market cap: $25.1 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil. Investors also gain exposure to the company’s facilities that extract, process and store natural gas. In December 2019, Pembina acquired pipeline operator Kinder Morgan Canada for $2.3 billion. In addition, it paid the firm’s U.S. parent, Kinder Morgan, $1.6 billion for the U.S. portion of the Cochin pipeline. On March 1, 2022, Pembina announced a joint venture with private equity investor KKR & Co. Inc. (New York symbol KKR) that will see the two companies combine their Western Canadian natural gas processing assets. Pembina will own 60% of…

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