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Thursday, March 18, 2010

Oh no! Pembina Pipeline Income Fund (PIF.UN) cancels its DRIP!

Believe it or not, I call 2 times my broker for the following reason: the dividend earned this month of Pembina Pipeline Income Fund (PIF.UN) didn’t DRIP! How come? The money was lying there in cash in my broker account. I wait almost the whole week and nothing, no DRIP! Awful!

But in 2 times, my broker had no idea of what was going on! The answer I got was something meaning: if it didn’t DRIP, its mean there’s no DRIP. Whatever! But you have to know that in the meantime, I had cancelled my DRIP because I taught I was going to transfer everything at iTrade and I didn’t want any transfer problem among the way. So I left my DRIP cancelled for about 2 weeks or so. Once my RSP loan got refused at Bank of Scotia (BNS), I decide to stay with my current broker because hey, business is business. So I really taught it was because my DRIP had been removed that my dividend of Pembina didn’t DRIP. But this wasn’t the real reason at all! The main reason being that Pembina cancel it’s DRIP! This is a nightmare!

Ok, you might tell yourself: calm down, it’s only a DRIP! Yeah, your kind of right. But did you know: 1 unit of Pembina Pipeline Income Fund (PIF.UN) = 1.56$ in annual dividend? This month, a DRIP would have provided me at least 2 brand new units! And 2 brand new units = 3.12$ in annual dividend money! See where I am coming from?

Anyhow, there will be no more extra unit of Pembina Pipeline Income Fund (PIF.UN) because the company decides to cancel its DRIP program. Kind of sad for us who worked so hard at building a strong investment portfolio. But good news: Pembina Pipeline Income Fund had confirmed a 1.56$ dividend per unit until 2013. It’s very good news for investor. Ok, this means that no dividend increase is being plan for PIF.UN until 2013. But 2013 is just in 3 years from now. And at a 1.56$ annual dividend, PIF.UN is a generous dividend payers. So when it comes to Pembina Pipeline Income Fund (PIF.UN), it’s definitively a hold for me.

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