These utilities keep making savvy acquisitions

Article Excerpt

Both Pembina and Algonquin offer you a high, sustainable dividend yield. What’s more, the two companies keep making timely acquisitions to boost their cash flow. That should also lift your future dividends. PEMBINA PIPELINE, $33.94, is a buy. The company (Toronto symbol PPL; Shares outstanding: 549.8 million; Market cap: $18.7 billion; TSINetwork Rating: Average; Divd. yield: 7.4%; 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 U.S. parent of Kinder Morgan $1.6 billion for the U.S. portion of the Cochin pipeline. In the three months ended March 31, 2020, overall revenue fell 15.1%, to $1.67 billion from $1.97 billion a year earlier. During the quarter Pembina transported 3.5 million barrels of oil equivalent per day. That’s 3.1% higher than a year earlier. However, lower oil and gas…

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