Monday, August 3, 2015

Recent Buy - Inter Pipeline Ltd. (TSE:IPL)

22th July 2015 I Bought 100 shares of Inter Pipeline Ltd at CA$ 27.52 per share plus commission.

Inter Pipeline Ltd is engaged in petroleum transportation, storage and natural gas liquids extraction business. The Company owns and operates a combination of energy infrastructure assets in western Canada and northern Europe. The Company operates in four business segments: Conventional Oil Pipelines; Oil Sands Transportation; NGL Extraction and Bulk Liquid Storage. The Conventional Oil Pipelines segment consists of the Bow River, Central Alberta and Mid-Saskatchewan pipeline systems and has around 3,700 kilometer of pipelines. The Oil Sands Transportation segment consists of the Cold Lake, Corridor and Polaris Pipeline systems and has around 2,600 kilometer of operating pipeline and 3.8 million barrels of storage. The NGL Extraction segment consists of the Cochrane, Empress II and has around 50% ownership of Empress V extraction plants. The Bulk Liquid Storage segment consists of around 12 bulk liquid storage terminals located across the United Kingdom, Ireland, Germany, Denmark and Sweden.


Inter Pipeline Ltd is a member of Canadian Dividend All-Star List with an 6 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 12.1, 10.9, 9.3 and 6.1. Inter Pipeline Ltd currently pays monthly dividends of CA$0.1225 per share. (CA$ 1.47 annually)

Details of my purchase:


Some weeks ago Roadmap2Retire bought Inter Pipeline Ltd and made also a short analysis of it. If you are interested, read more here.

Some ratings for IPL.TO:

    Yahoo:  Mean Recommendation 2.3
    Reuters: Mean Rating 2.33

At today's exchange rate, this purchase 100 shares of IPL.TO will increase €76.00 (CA$109.50) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9470.00. With purchase price CA$27.52 plus commission (CA$5.00) my starting yield on cost is 5.33%.

Click here to see my portfolio.

Full Disclosure: Long IPL.TO


  1. Great purchase, DH. Its a great company that has grown its cash flow very well over the years. I remain bullish on the long term prospects and really like the exposure in the European market as well. Thanks for the mention and good to be a fellow shareholder in this company.

    Best wishes

  2. Happy to be a fellow shareholder with you Hawk. Oil and gas is so volatile and a totally different game to play. I believe you gotta sell at the tops and buy more at the lows if you really wanted to make a profit. As dividend investors, it's just another income source for us though. The pipelines are a totally different beast. They make money whether oil is up or down and acts as a toll booth. I like that. Less volatile for sure. Infrastructure and barriers to entry is costly and some of the permits are a nightmare to attain. Wide moat for sure.
    IPL is definitely the cheapest right now out of the 3 canadian pipelines i love which is Enbridge and TransCanada.
    Thanks for sharing and take care.