Plains All American Pipeline: Get Ready For A 10%+ Yield

Summary

• Plains All American Pipeline started 2022 on a positive note by increasing their distributions near 21% higher.
• This marked an end to a painful era that saw multiple cuts across the last few years.
• Recently, management very clearly signaled that higher distributions are coming.
• Elsewhere, their fundamentals are solid with better-than-expected financial performance and leverage continuing to decrease.
• Since this could see their distribution yield jump to a very high 10%+, I believe that upgrading to a strong buy rating is now appropriate.

JamesBrey

Introduction

Upon entering 2022, it saw a new era of distribution growth beginning for Plains All American Pipeline (NASDAQ:PAA), as my previous article highlighted. Thankfully, they did not disappoint with a large 21% increase following soon

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PAA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.