Chasing the Yield – April 18, 2022
Episode 49
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News
Bank Stocks Have to Reckon With the Downside of Higher Rates – WSJ
Sold 37 shares of Warner Bros Discovery Inc (WBD) and purchased 49 shares of AT&T (T) with the proceeds. This is from the special window I missed for selling the shares last week. Turns out I wasn’t late but just didn’t know I could sell the shares by calling my broker. The temporary symbol didn’t show up in my TD Ameritrade account online. I thought I had missed the window to sell it when I was never shown by TD Ameritrade that it was available for me to trade. Live and learn!
In July 2021 I purchased 615 shares of Pembina Pipeline Corporation (PBA) for my
High Yield Portfolio. It’s performing solid for almost a year and looks to remain that way for the immediate future.
PBA is a Canadian company founded in 1954. Their headquarters is in Calgary. For 37 years the company delivered oil to Edmonton using the Pembina Pipeline system until 1991 it acquired Peace Pipe Line, Ltd and half of the Bonnie Glen System, which served Alberta. The company joined the Toronto Stock Exchange in 1997. In 2000 the company completed it’s largest acquisition that doubled it’s size over night. PBA acquired Federated Pipe Lines, Ltd. PBA converted from a corporation to trust in 2010 and nearly doubled its assets in 2017.
PBA’s assets have a solid foundation and are difficult to replicate. Pipelines are difficult to construct, as anyone following the Keyston XL Pipeline knows, and cost billions of dollars in construction and regulatory compliance. The shale basins where PBA’s assets reside have more than 100 years of reserve life left based on current production rates. The company believes it’s pipelines to last at least 100 years with proper maintenance and as such should provide steady performance for decades to come.
On July 28, 2021 PBA went for $32.46/share and is $39.81/share at the time of this recording April 18, 2022.
Market CapP/E RatioDividend YieldDividend Streak$21.5 billion21.85.08%23 yearsCurrent as of April 14, 2022
5 yr Chart
My Shares
Shares purchasedCost per shareEstimated Annual Income615$32.46$1,236
Simply Safe Dividend Rating SAFE
Pembina Pipeline Corporation
Sources: Walls Street Journal, TD Ameritrade, Simply Safe Dividends, Wikipedia
Portfolio Update
LowYieldMediumYieldHighYieldTotalPortfolioWeek-0.33%+0.57%+1.62%+0.44%Month+2.60%-0.24%+0.56%+0.94%2022-1.06%+0.85%+8.89%+1.64%Inception+39.66%+10.03%+2.34%+19.31%
Dividends Received this WeekAmountCommunity Bank (CBU)*...
