Their long-term contracts cut your risk

Article Excerpt

Both Pembina and Algonquin operate under long-term contracts. That helps lower their risk in today’s uncertain economy. Investors in both stocks tap a high dividend yield. Pembina’s dividend is highly sustainable—and Algonquin is now taking significant steps to pay down its debt and boost the sustainability of its payout. Both are buys. PEMBINA PIPELINE, $53.51, is buy. The company (Toronto symbol PPL; Shares outstanding: 59.5 million; Market cap: $30.8 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; www.pembina.com) is an energy transportation and midstream service provider that has served North America’s energy industry for 70 years. Pembina owns an integrated network of oil and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. On April 1, 2024, Pembina completed the purchase of additional stakes in two joint ventures with Enbridge: Pembina acquired an additional 50.0% of the Alliance Pipeline, which pumps natural gas from B.C. and Alberta to Chicago; it also bought 42.7% of…