Q: You have noted utilities may face interest rate headwinds if the US increases in December, or early in 2016. Interpipeline and Pembina reported solid results and it seems their businesses are growing and IPL raised their dividend again. Both have already fallen by more than one-third from their 2014 highs. Are current share prices a ceiling for these companies or will their six percent yields continue to attract investors and eventually raise the share prices closer to where they were before the oil price meltdown? Second, if oil does ever get back into the $70's or higher, will these companies participate strongly in the expected rally?
Thanks.
Thanks.