We had estimated that IPL would be spending $205 mm in 2016; the additional capital spending includes more spending on the Conventional Oil Pipelines business than we had anticipated. We continue to believe that Inter Pipeline is undervalued at a current yield of 7%. The market appears to expect an increase in the monthly dividend (currently $1.56/year) late in 2016 as the consensus 2016 dividend is $1.59/share. With a projected payout ratio of 71% in 2016 IPL can afford to grow its dividend fo ....
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INTER PIPELINE LTD. (IPL) ANNOUNCES 2016 CAPEX OF $250 MM
- Published:
21 Dec 2015 -
Author:
Steven I. Paget -
Pages:
3
We had estimated that IPL would be spending $205 mm in 2016; the additional capital spending includes more spending on the Conventional Oil Pipelines business than we had anticipated. We continue to believe that Inter Pipeline is undervalued at a current yield of 7%. The market appears to expect an increase in the monthly dividend (currently $1.56/year) late in 2016 as the consensus 2016 dividend is $1.59/share. With a projected payout ratio of 71% in 2016 IPL can afford to grow its dividend fo ....