Topic: How To Invest

Dividend Advisor Hotline – Friday, December 15, 2023

Article Excerpt

ALTAGAS LTD., $27.08, Toronto symbol ALA, is a buy. The company processes, transports, stores and markets natural gas for producers. It also operates natural gas utilities and is a power generator, with gas-fired, coal-fired, wind, biomass and hydroelectric plants. Almost all of AltaGas’ assets are now in the U.S. That in part reflects its July 2018 purchase of Washington, D.C.-based utility WGL Holdings Inc. for $4 billion. AltaGas cut its monthly dividend by 56.2% in 2019, to $0.08 a share from $0.1825, to conserve cash in the wake of the WGL acquisition. However, it has raised the annual rate each year since then, and it switched to quarterly payments in 2022. Due to its improving outlook, AltaGas is now raising your quarterly dividend by 6.3%. Starting with the March 2024 payment, investors will receive $0.2975 a share instead of $0.28. The new annual rate of $1.19 yields a high 4.4%. The stock also trades at just 6.9 times the $3.95 in cash flow per share…