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Pembina Pipeline Corporation (PPL $51.47)
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Peyto Exploration & Development Corp. (PEY $22.10)
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Freehold Royalties Ltd. (FRU $15.01)
Q: I am thinking about buying either PPL, FRU or PEY, mainly for the dividend. Which one is the best quality and has the best prospects of its share price rising?
5i Research Answer:
Keep in mind PPL is quite different than a producing company such as PEY or a royalty play such as FRU. PPL's business is more stable and depends more on volume, whereas the others' fortunes are more closely tied to commodity prices. So, while PEY/FRU could go higher if prices move the rigth way, we would see PPL as the safer, more secure call today.