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US Dividend Income Report

Pembina Pipeline Corp

Jul 26, 2023

PBA
Investment Type
Large-cap
Risk Level
Action
Rec. Price ($)

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Pembina Pipeline Corp (Pembina) (NYSE: PBA) is a Canada-based energy transportation and midstream service provider. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and a growing export terminals business. It operates through three segments: Pipelines, Facilities and Marketing & New Ventures.

Kalkine’s Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

  • The stock has corrected by 2.62% in the last three months as well as by 11.08% in the past six months.
  • The stock is leaning towards the lower band of its 52-week range of USD 38.29 and 52-week low price of USD 29.59, with the current price near a decent support range of USD 29.00-USD 31.00, from where the price has taken a decent bounce twice.
  • The price is currently between both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 56.54, indicating decent momentum in the current upward momentum.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~24.70% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc. and RBC Dominion Securities, Inc. are the biggest shareholders, holding the maximum stake in the company at ~3.62% and ~3.61%, respectively.

1.4 Consistent dividend payments with impressive dividend yield:

In recent years, PBA has maintained a consistent dividend payment track record, regularly distributing dividends to its shareholders. Dividends are typically paid on a quarterly basis. PBA's board approved a 2.3 percent increase in the common share cash dividend for Q2 2023, raising it to USD 0.6675 per share. Shareholders of record on June 15, 2023, will receive the dividend on June 30, 2023, subject to applicable law. This decision reflects the Company's commitment to providing returns to its shareholders and signifies the confidence of the Board in the Company's financial position and prospects. As per the latest dividend amount, the dividend yield for the company is an impressive 6.34%.

1.5 Key Metrics

PBA has experienced a positive trajectory in its top-line revenue and profitability figures over the past five years. Additionally, the company has demonstrated effective cost management across various operational levels, except for gross margin. Despite the slight concern regarding gross margin, PBA's overall financial performance indicates strong growth potential.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY23:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

  • The stock has corrected by 2.62% in the last three months as well as by 11.08% in the past six months.
  • The stock is leaning towards the lower band of its 52-week range of USD 38.29 and 52-week low price of USD 29.59, with the current price near a decent support range of USD 29.00-USD 31.00, from where the price has taken a decent bounce twice.
  • The price is currently between both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 56.54, indicating decent momentum in the current upward momentum.

 

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 25, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.