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Plains All American (PAA) provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products.

Plains' assets span the United States and Alberta, Canada, but are heavily concentrated in the Permian Basin.

The company was founded in 1981 and is headquartered in Houston, Texas.

Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.

Three key data points gauge Plains All American Pipeline LP or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

PAA Price

Over the past year, PAA’s share price increased about 32% from $11.63 to $15.34 as of Wednesday’s market close.

If PAA’s stock trades in the range of $10.00 to $20.00 this next year, its recent $15.34 share price might rise to $16.50 by next year. Of course, Plains All American’s price could drop about the same $1.16 amount, or more.

My upside estimate of $1.16, however, is about $0.14 under the median of one year target prices estimated by 18 analysts tracking PAA for brokers.

PAA Dividend

Plains All American Pipeline LP has paid variable quarterly dividends since February 12, 1999. PAAs most recent quarterly dividend, paid August 14th to shareholders of record July 28th was $0.2675So, PAA’sannual dividend payout is projected to be $1.07 and yield 6.98% per Wednesday’s closing price.

PAA Returns

Adding the $1.07 anticipated annual dividend to Plains All American’s estimated $1.16 possible price upside, reveals a $2.23 potential gross gain per share for the coming year.

At Tuesday’s $15.34 closing price, a little under $1000 would buy 65 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.15 per share.

Subtracting that maybe $0.15 brokerage cost from my estimated $2.23 gross gain per share makes a net gain of $2.08 X 65 shares = $135.20 or about a 13.5% net gain.

This may be the time to pounce on Plains All American Pipeline LP shares. But beware, PAA is a midstream fossil fuels tranporatation operation. Furthermore, the estimated $69.80 dividend from $1000 invested comes in over 4.5 times greater than the recent single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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