Their dividends add to your long-term value

Article Excerpt

We think it’s realistic to assume dividends from blue-chip companies will continue to contribute around a third of a conservative investor’s portfolio returns (see the box on this page for more info). Both Pembina and Innergex (see below) offer you high, sustainable dividend yields. What’s more, the two companies are both making moves to boost their cash flow, which should lift your future dividends. PEMBINA PIPELINE, $48.58, is a buy. The stock (Toronto symbol PPL; Shares outstanding: 549.7 million; Market cap: $26.7 billion; TSINetwork Rating: Average; Divd.d yield: 5.2%; www.pembina.com) gives you a stake in pipelines carrying almost all of B.C.’s oil and half of Alberta’s conventional oil. The company’s network also transports 30% of Western Canada’s natural gas liquids (NGLs), while its extensive facilities extract, process and store NGLs. Pembina also operates natural gas-processing plants. In December 2019, the company closed its acquisition of Kinder Morgan Canada for $2.3 billion. That firm owns crude oil storage and terminal businesses at Edmonton and Vancouver wharves. It…

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