Here are Two Best Buys in Income Trusts

Article Excerpt

PEMBINA PIPELINE INCOME FUND $16.72 (Toronto symbol PIF.UN; SI Rating: Extra risk) has interests in 14 feeder pipeline systems with a total length of 8,350 kilometres. This includes the Pembina System, in operation since 1954. The company also holds a 50% interest in the Fort Saskatchewan Ethylene Storage Limited Partnership. Pembina’s total network is the largest feeder operation in Canada. These pipelines bring oil and gas from fields in northeastern B.C. and western and northern Alberta to refineries, or feed into major pipelines such as the Enbridge Pipeline System. In the three months ended March 31, 2007, Pembina’s revenues rose 18.2%, to $96.4 million, from $81.5 million. Cash flow per unit rose 30%, to $0.39 from $0.30. In January, Pembina increased its monthly distribution by 10%, to $0.11 from $0.10. The units now yield 7.9%. It distributed 88% of its cash flow to its unitholders in the latest quarter. Pembina has a number of projects underway to increase its pipeline operations. One is a $290…