Plains All American Pipeline LP (PAA)

[Timothy Smith]

Plains All American has completed over 70 acquisitions over the last 11 years and expects to spend $500 to $750 million on average each year on acquisitions. At the company's current value, this equates to 5% to 6% growth just from acquisitions. The privately held PAA general partner has been willing to modify incentive distribution rights to ensure that acquisitions are accretive to the distributions paid to L.P. unit holders.

The bottom line for investors is that Plains All American Pipeline is a company which has generated steady distribution growth for investors - increasing 32 out of the last 34 quarters. Over the last 10 years, distributions have increased by an average of 7.5% per year. The company has targeted 9% distribution growth from 2012 and the projected distributions are covered 1.3 times by the projected distributable cash flow. The current dividend yield for PAA is 5.3%.