These pipeline operators offer high yields

Article Excerpt

Most of the pipelines owned by Pembina and TC Energy operate under long-term contracts. That helps lower their risk in today’s uncertain economy. Investors in both stocks tap a high, sustainable dividend yield. That adds to their appeal and also supports their share prices. PEMBINA PIPELINE, $48.13, is buy. The company (Toronto symbol PPL; Shares outstanding: 549.5 million; Market cap: $26.4 billion; TSINetwork Rating: Average; Dividend yield: 5.6%; 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 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 the Aux Sable gas processing plant in…