Every Monday we feature “A Stock to Sell” as our daily post. With every stock we recommend as a sell, we give you a full explanation of why we advise against investing in the stock at this time.

Keyera Corp. (symbol KEY on Toronto; www.keyera.com), provides a number of services to the oil and gas industry, including gathering, processing, storage and transportation.

In the three months ended June 30, 2014, the company reported cash flow of $1.04 a share, up 3.0% from $1.01 a year earlier.

Keyera raised its monthly dividend by 7.5%, to $0.215 a share from $0.20, beginning with the June 2014 payment. The stock now yields 2.6%.

The company has a number of growth projects underway. It recently took on a 30% interest in Enbridge’s Norlite pipeline, which will deliver condensate from Fort Saskatchewan to the Athabasca oil sands. That will give the area’s producers the condensate they need to dilute the bitumen they produce so that it will flow through pipelines. Norlite’s estimated total cost is about $1.4 billion.

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Stock market advice: Dependence on one region and one commodity adds risk for Keyera

Meanwhile, Keyera is building a rail-loading terminal for crude oil in Edmonton under a 50/50 joint venture with Kinder Morgan Energy Partners L.P. This facility, which will be called the Alberta Crude Terminal, will be able to load oil from Kinder Morgan’s Edmonton Terminal onto trains for delivery to North American refineries.

Keyera will operate the terminal, which will be able to transfer about 40,000 barrels of crude a day into tank cars and will serve both Canadian National Railway and Canadian Pacific Railway. Keyera is paying $65 million of the building costs; Kinder Morgan will contribute the remaining $33 million.

In total, the company is investing a record $700 million to $800 million in capital projects this year, including upgrading and expanding its existing facilities.

Keyera’s high dividend yield adds appeal and appears safe. However, the company’s focus on one region and one commodity adds considerable risk. As well, the stock is up 75% in the past year and now trades at a high 24.0 times this year’s forecast cash flow of $4.08 a share.

We don’t recommend Keyera Corp. If you own the stock we think you should sell.

Tomorrow we report on a Canadian energy stock that we have as a buy for conservative investors.