Replies to post #701 on Dividends

[yayaa]

Going long on PAA today. Dividend going forward looks very healthy and I like what this analyst from citigroup has to say

"We believe the partnership will be one of the best performing master limited partnerships (MLPs) in our composite over the next few years based on its strong asset base that also offers attractive organic growth opportunities. The partnership has a competitive advantage through a strategically located crude oil pipeline and storage business that allows it to capitalize on the supply and demand imbalances that regularly occur in the U.S. and Canadian crude oil markets. In addition, the partnership’s recent acquisition of natural gas storage assets should serve to increase its long-term growth profile, establish a platform for future expansion, and stabilize cash flows through diversification and increased fixed-fee revenue generation. Not only do we estimate that Plains All American will be able to generate above-average distribution growth, we also favor the partnership’s conservative balance sheet and high distribution coverage ratio that affords a tremendous amount of flexibility in setting distribution policy and/or cash flow reinvestment.

Our 12-month target price of $53 per unit reflects our view that the partnership should be able to increase its distribution by $0.35, to an annual run-rate of $3.05 per unit over the next 12 months..."