Topic: How To Invest

Dividend Advisor Hotline – Friday, May 11, 2018

Article Excerpt

PEMBINA PIPELINE CORP., $44.31, Toronto symbol PPL, owns pipelines that carry almost all of B.C.’s oil and half of Alberta’s conventional oil. Its network also transports 30% of Western Canada’s natural gas liquids (NGLs). The company owns extensive facilities to extract, process and store NGLs; it also operates natural gas-processing plants. In October 2017, Pembina completed its acquisition of Veresen Inc. for $9.7 billion in cash and shares. The purchase is a great fit for the company: Veresen’s holdings broaden Pembina’s operations as well as its U.S. exposure. The acquisition comes with key assets: 50% of the Alliance gas line, which spans the 3,000 kilometres between Chicago and Fort St. John, B.C.; and 50% of the Ruby pipeline, which runs 1,100 kilometres from Wyoming to Oregon. Thanks to the additional cash flow from Veresen, Pembina will raise its monthly dividend by 5.6%. Starting with the June 2018 payment, investor will receive $0.19 a share instead of $0.18. The new annual rate of…

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