Pembina Pipeline…A Potential Long Term Investment

Most stocks pay their investors quarterly at best. That makes it a bit more challenging for those who rely on these payments to cover their monthly bills. While they can choose to invest in three sets of stocks that are on different payment cycles, an easier way to generate a consistent monthly income stream is to invest in a stock that pays a dividend every 30 days.

While a few stocks pay monthly, one enticing option worth considering is Canadian midstream company Pembina Pipeline (NYSE: PBA).

Pembina Pipeline pays out only about 57% of that stable cash flow to investors in support of its dividend. That’s a much more conservative level compared to 2015 when the company paid out 72% of its cash flow

Not only has Pembina’s financial profile grown stronger over the last few years, but the company has been able to continue increasing its dividend. Overall, the payout has grown at a 4.5% compound annual rate in the last decade, including by 5.3% this year.


Pipelines are generally the most economical way to transport large quantities of oil or natural gas over land. And as long as their is demand for energy, there will be demand for oil and gas. Pipeline companies are like the toll booths on highways, they just keep collecting and collecting and this phenomenal cash cow will continue for years to come based on future energy demand.


However, I have been playing defensive against the Markets since 2018 and think a downturn in the Markets is right around the corner. Thus, I will keep Permbina Pipeline on my watch list and would prefer to buy the stock for my retirement account if and when price reaches the monthly demand at $21.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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