Topics Dividend Stocks

Pembina Pipeline $39.46 - Toronto symbol PPL

PEMBINA PIPELINE $39.46 (Toronto symbol PPL; Shares outstanding: 389.5 million; Market cap: $15.5 billion; TSINetwork Rating: Average; Dividend yield: 4.4%; www.pembina.com) owns pipelines that carry almost all of B.C.’s oil and half of Alberta’s conventional oil. It also carries 30% of Western Canada’s natural gas liquids (NGLs).

In fact, the company owns extensive facilities to extract, process and store NGLs, as well as natural gas processing plants.

In the three months ended June 30, 2016, Pembina’s cash flow per share rose 17.6%, to $0.60 from $0.51.

So far this year, the company has placed $1.6 billion of new assets into service. This includes $1 billion in gas-processing facilities.

As well, Pembina recently completed the $556.0 million acquisition of a new natural gas processing complex in northwestern Alberta. As part of the deal, the company will process gas for Paramount Resources under a 20-year contract.

Pembina’s stock trades at 16.2 times its expected 2016 cash flow of $2.43 a share. The company raised its monthly dividend by 4.9% with the May 2016 payment, to $0.16 from $0.1525; it yields 4.4%.

Pembina Pipeline remains a buy.

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