Altagas Ltd (ALA.TO) Buy, Sell or Hold

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Altagas Ltd (ALA.TO)

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53.87

+0.55 (1.03%)

as of Jun 19, 2026, 8:00:00 pm Market Open.

576 watching

BUY

A quiet stock that no one is paying attention to. Trades at 12.4x 2022 expected earnings which is very reasonable. Dividend is nice and well covered. 11% EPS growth modelled. Balance sheet is not great, but it trades as a mid-stream. However, 66% of their business is utilities. A good buy at these levels.

PAST TOP PICK

(A Top Pick Mar 04/20, Up 4%) It remains his biggest holding. A lot lies ahead for ALA. They have exposure to the western Canadian natural gas market (he's very bullish about this) through their Ridley Island propane terminal. He feels good about ALA. It's very well-positioned. They raised their dividend at the end of last year, which was earlier than he expected, and he expects it to grow more. ALA stock should reach the mid/high-20's in the next 12-24 months.

PARTIAL SELL

They've done a great job and the stock has done better lately with a pretty decent dividend yield. There is not much growth going forward. He switched some to AQN-T to get a play on the renewable. But there is nothing wrong with ALA-T.

PAST TOP PICK

(A Top Pick Jan 06/20, Up 2%) Represents good value here. Will get solid, steady returns on their Washington utility. Will participate in the changes to NA electrical grid. Offshore nat gas in BC is at capacity. Firing on all cylinders. Increased dividend in December, ahead of schedule.

COMMENT

Misunderstood and undervalued. Now being upgraded to outperform, and this speaks to better times ahead. Balance sheet being restructured in a positive way. Should see dividend increases next year or the one after. $17 is decent, but anywhere below $16 is a great entry point. Yield is 5-5.5%.

BUY ON WEAKNESS

He's followed this. They were once saddled with a ton of debt after buying a huge US utility, WGL, but have sold assets to pay that down. They're much better now. Several of their assets have done well, including their propane export facility which is tracking ahead of expectations. Last week, they announced they'll increase their stake in Petrogas which is accretive, though funded by debt. ALA is in a good position now. The dividend is safe. In a few years, they 'll have to seek opportunities elsewhere. Likes this, but look for a better entry point.

BUY

For income investors He sold this at $18. It's likely safe to own again and the yield is safe. Stable earnings, though only single-digit growth. He's comfortable with this. It pays a 5.8% yield, paid monthly.

COMMENT

He owned it years ago when they had just did a big acquisition in the U.S. which inspired concerns over leverage. All this hit the stock. It has since bounced back with great hydro and infrastructure assets. Pays a good, consistent yield. But he prefers Brookfield Infrastructure because it has more global assets that are run by fine managers. He prefers Brookfield.

BUY

The effect of the U.S. exchange rate? One of his biggest holdings. Currencies are in a race to the bottom in this era. He expects the CAD to decline vs. USD, so ALA will benefit. ALA is his largest position. The ALA stock price didn't deserve to be cut more than in half during the lockdown because 70% of their business are regulated American utilities. ALA projects 10% growth in the next 5 years on their WGL business, a regulated utility, and has reduced debt. He expects the dividend to rise in 2021. Their midstream business in BC is doing great; their propane terminal is exporting record amounts. CNQ buying Painted Pony is a plus, because PP was a big customer of ALA's. Many things are going well for ALA. They pays a 5% yield. Low risk and good reward.

COMMENT

Fortis vs. Altagas ALA is riskier, but it's starting to come into the cycle so, it's doing a lot better. Fortis is a steady-eddy withe nice free cash flow growth and trading at an okay 17.4x valuation, in line with AQN. They hold a lot of renewables, so it will do fine if Biden is U.S. president. It has US exposure. he likes them. He prefers Fortis. Some money has flowed out of here, so it's not trading at the top. With interest rates being a lot lower than before, all these names can trend up 10% in the future.

DON'T BUY

There is a possibility the price will recover within five years. It is higher risk/reward to PPL-T, however. It needs more improvement in earnings quality for him to jump in.

STRONG BUY

He has recommended ALA more than any other analyst, he reckons. He thinks people don't understand how they have transformed the regulated utility into an entity with a lot of upside. He thinks it is under valued and just bought more this week. One of the most attractive investments in this uncertain market right now. Yield 6%.

HOLD

They do not own ALA. When they bought a Washington utility it took time to re-balance the portfolio. If you own it, you could continue to do so. A good investment if you are looking for utility exposure.

BUY ON WEAKNESS

PPL & ALA? PPL at $18.50 is his target buy price. ALA might be a good buy if we take out the lows of March.

COMMENT

ALA was just upgraded by his firm. It has 55% of their earnings from regulated utility activities. If you are looking to sleep better at night, ENB has a less risky business model. Their risk is from growth being halted with recent pipeline protests.

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Altagas Ltd (ALA.TO)