Should Pembina Pipeline Corporation (TSE:PPL) Be Your Next Stock Pick?

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Pembina Pipeline Corporation (TSE:PPL) due to its excellent fundamentals in more than one area. PPL is a well-regarded dividend payer with a a great track record of delivering benchmark-beating performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Pembina Pipeline here.

Solid track record average dividend payer

PPL delivered a bottom-line expansion of 45% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did PPL outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 16% earnings growth. This is an optimistic signal for the future.

TSX:PPL Income Statement, April 25th 2019
TSX:PPL Income Statement, April 25th 2019

PPL dishes out decent dividend payments over time, beating the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

TSX:PPL Historical Dividend Yield, April 25th 2019
TSX:PPL Historical Dividend Yield, April 25th 2019

Next Steps:

For Pembina Pipeline, I’ve put together three pertinent factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for PPL’s future growth? Take a look at our free research report of analyst consensus for PPL’s outlook.
  2. Financial Health: Are PPL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PPL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.