This post is going to be about a company called Interpipeline Ltd and it is on the TSX under the ticker IPL.TO. It used to be a unit trust company under the symbol IPL-UN.TO but they later removed that so that foreign investors could buy in to them.
I was fortunate enough to come across this company purely through conversing with a friend who in turn had it recommended to him by his broker. I had a quick look at the company and liked the fact they were paying out dividends monthly and in the energy sector. At the time of writing they are paying out CDN $0.1075 per unit.
Monthly dividend payers always appeal to me because the compounding effect works at a faster rate.
We are always going to need energy and transportation of it in some form so it made sense to me but on the TSX energy companies are a dime a dozen and not all of them are good. I dug around a bit and found a lot of high recommendations on the stock. Sometimes you just get that vibe from management, the website and so forth that the company is a well-oiled machine and this to me, was one of them. That was about a year ago and i built a pretty big position in it but not enough to the point that if the company did implode it would take me with it :)….never ever bet the farm no matter how tempting.
There is no point in me regurgitating too much information as it is all on their website www.interpipeline.com in an easy digestible form.
However, i’ll just post a couple of excerpts, company financials..
As for future growth and catalysts, well they are not top dog so they could ultimately be taken out or keep climbing, i like the fact they have big operations all over the place, not just in the oil sands. When you compare them to say Kinder Morgan, they are tiny and who knows maybe the big guys down south may want some of the action, hard to say.
I’m sure someone out there can do a super deep analysis of the stock with the pros and cons but i thought i’d throw it out there as it isn’t on too many radars and you can decide for yourself.
What do you think? Like the stock? Hate the stock?