Topic: How To Invest

Pat: I'm looking at Inter Pipeline as a high-dividend pipeline stock for my portfolio. What do you think of it? Thank you.

Article Excerpt

Inter Pipeline Fund, $19.82, symbol IPL.UN on Toronto (Units outstanding: 267.2 million; Market cap: $5.3 billion; www.interpipelinefund.com), transports, stores, markets and processes oil and natural gas. The fund has four divisions: The oil sands division’s pipelines transport 35% of Canadian oil sands production. The conventional business’s pipelines handle 15% of western Canadian conventional crude oil. NGL Extraction converts 40% of Alberta’s exported natural gas into natural gas liquids, like ethane, propane and butane. The storage division operates terminals in the U.K., Germany and Ireland under the Simon Storage banner, and in Denmark under the Inter Terminals brand. In January 2012, the fund paid $505.9 million for four oil-storage terminals in Denmark. The purchase added 10.7 million barrels to Inter Pipeline’s petroleum capacity, bringing it to a total of 19 million barrels. Inter Pipeline is now the fourth-largest provider of storage services in Europe. Major purchases like this add risk, especially when they involve entering a new country. However, the storage terminals have already added to…

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