Topic: How To Invest

Pat: Could I have your opinion on Parkland Fuel Corp.? They have a really good dividend yield. Thanks.

Article Excerpt

Parkland Fuel Corp., $16.86, symbol PKI on Toronto (Shares outstanding: 69.7 million; Market cap: $1.2 billion, www.parkland.ca), operates gas stations, convenience stores and a fuel distribution business, mostly in western Canada and Ontario. The company was called Parkland Income Fund prior to its conversion to a dividend-paying corporation on December 31, 2010. Parkland owns 136 rural gas stations and convenience stores. Its brands include Fas Gas Plus, Race Trac Gas and Short Stop (convenience stores). Many stations sell propane in addition to gasoline and diesel fuel. The company also operates Esso gas stations in western Canada and Ontario under a licensing deal with Imperial Oil (symbol IMO on Toronto). Parkland continues to sell its company-owned stations to franchisees. This lets it collect rent and commissions on fuel sales without having to staff and operate the stations. As well, the company sells fuel to commercial customers and 584 independent gas stations. In addition, Parkland recently converted its Bowden oil storage tanks near Red Deer, Alberta,…