Pembina lifts its profit forecast

Article Excerpt

PEMBINA PIPELINE CORP. $45 is a buy. The company (Toronto symbol PPL; High-Growth Dividend Payer Portfolio; Utilities sector; Shares outstanding: 550.3 million; Market cap: $24.8 billion; Dividend yield: 5.6%; Dividend Sustainability Rating: Above Average; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil. The company has paid dividends since 1997. It last increased that monthly payment by 5.0% with the January 2020 payment, to $0.21 a share from $0.20. The new annual rate of $2.52 yields a high 5.6%. Given rising demand for oil as the economy re-opens, Pembina now expects its earnings before interest, taxes, depreciation and amortization (EBITDA) in 2022 will range from $3.45 billion to $3.6 billion. That’s up from its earlier forecast of between $3.35 billion and $3.55 billion. Pembina Pipelines is a buy. buy…

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