By Marc Lichtenfeld The Oxford Club’s Chief Income Strategist, Marc Lichtenfeld, takes a look at Pembina stock and its dividend safety rating.
A little more than a year ago, I wrote that Pembina Pipeline (NYSE: PBA) would earn a dividend safety upgrade if 2019’s free cash flow projection was on the mark.
It wasn’t. Not even close.
In March 2019, the Canadian pipeline company was forecast to generate CA$1.44 billion in free cash flow. Instead, it generated just CA$887 million while paying out CA$1.32 billion in dividends.
In other words, it paid out CA$1.48 in dividends for every CA$1 in free cash flow.
This year, free cash flow …read more
