Plains All-American Pipeline LP (PAA & PAGP) Update - Nov 29

[dan_s]

PAGP has been one of the top performing stocks in our High Yield Income Portfolio, up 27.8% YTD, not including dividends.

PAGP is the general partner of PAA, which is an MLP. They pay identical dividends.

PAGP is a C-Corp., so it is suitable for your IRA.

At the time of this post PAGP was trading at $15.94. My updated current valuation is $18.50.

This very large midstream company has publicly said that their goal is increase dividends by $0.15/year after 2023. DCF is more than double the current dividend of $0.2675/quarter, so they have plenty of room to make these annual increases.

PAA completed several large capex projects prior to 2023, so they are now generating a lot of free cash flow.

This one is a classic "Growth + Income" stock.

TipRanks: "In a report released on November 6, Neal Dingmann from Truist Financial maintained a Buy rating on Plains GP Holdings (PAGP), with a price target of $21.00."