Tag Archives: TSX:ENF

Which Canadian Mid-Cap Pipelines Pay Out Safe Dividends?

Exploring 5 mid-cap Canadian pipelines that have maintained their dividends since oil prices have plummeted. Interestingly, some even increased their dividends twice in the last 12 months. Mid-cap businesses are safer than small-caps, and mid-caps could provide higher returns than large caps. Which of Altagas Ltd (TSX:ALA), Enbridge Income Fund Holdings Inc (TSX:ENF), Inter Pipeline Ltd (TSX:IPL), Keyera Corp (TSX:KEY), or Veresen Inc (TSX:VSN) pays out safer dividends compared with the group?

Mid-cap pipeline companies should provide higher returns than the large-caps when commodity prices improve because of the smaller sizes of the mid-caps. At the same time, mid-cap businesses are safer than small-caps.

This industry-wide dip makes the mid-cap pipelines attractive dividend investments for Canadian and American investors alike. However, it only makes sense to consider the mid-cap pipelines if their yields are sustainable.

Beware of high yields

One may be tempted to buy Veresen because of its 14.6% yield, the highest yield of the group. However, its high yield is solely because of its price decline; it has only maintained its monthly dividend from a year ago.

On the other hand, the other four mid-cap pipeline companies increased their dividends in the last 12 months. In the same period, Inter Pipeline increased its dividend by 6.1%, and all three of Altagas, Keyera, and Enbridge Income Fund increased their dividends twice for a total increase of 11.9%, 15.7%, and 21%, respectively. These four dividend growers have increased their dividends for at least four consecutive years. Read More