Altagas Ltd (ALA.TO)

Subscription Receipts. (A Top Pick Sep 20/17, Up 2%) It was subscription receipts but now is just common stocks. They had a troubled time period after the deal because they took on more debt. The yield is about 8% now. The debt levels are high, however. He hopes they will generate free cash flow now and will pay down debt with it.

Has had some problem with this name. Need to figure out how to pay for the recent acquisition and divest assets. Cash flow from operations needs to sustain the dividend. Good at these levels, as dividend quality is still strong. (Analysts’ price target is $28.75.)

He used to be big owners of this company. The 10 year yield started to take off after Trump was elected. They are levered quite high and therefore difficult to raise yield. They have a huge debt load and the cost of carrying that debt will go higher. It is in a difficult place in the market. Dividend should hold over the mid to long term.

Is watching it. Good yield, but tied to Alberta economy. With the pullback recently, hold onto it for now.

ALA-T vs. TOG-T He hopes oil prices move up, but the problem with many energy stocks is that they are already properly priced, including ALA-T and TOG-T, so there's little upside. He's neutral about both stocks and this sector.

Altagas versus Vermillion. VET-T is oil with some exposure into France and a little expensive. ALA-T has been beat down on the recent acquisition in Washington. Depending on your outlook on energy, ALA-T will act more defensively. But if you believe in $100 WTI, then he would go with VET-T.

He added a bit recently and he has held it for a long time. The reason he bought more is that he's entering the Alberta economy a bit--Canadian oil is ridiculously cheap. The dividend, over 8%, is sustainable, and it gives him some cash flow.

He likes it. It is a good utility company. It pays a good dividend yield. They just finished up a good transaction and it should be accretive to earnings soon. They sold off some assets that were not contributing to earnings.

Their recent earnings were mixed. Now that the acquisition of WGL is now closed, things should become more transparent. They were sold off with the concerns of rising interest rates. It is looking much better and is a good investment now.

It was a right place to be at a time. Reasonable payout ratio and an 8% dividend yield. He would wait it out. If he bought it are 30 he would hold it at 26.

The completed the acquisition of WGL recently that will add cash flow. They are working on the Ridley Island propane export terminal on the west coast, marking the first time propane will be exported to Asian and European markets. The CEO departed recently and he views it as not a major concern regarding operations of the company. He would be buying now on the recent price weakness.

He owns it personally. The WGL acqusition has been approved. High yield of 10%, but it carries a lot of debt on the acqusition side, so he didn't buy it for his client portfolios. This will probably move up from the current $28.

Under his model, this stock is overpriced by 15%. Also it is paying out over $2 in dividends but is expected to earn only about $1 this year and $1.35 next year. This is similar to Crescent Point. The stock is getting a bump from oil prices but he would not buy it until it comes down to $21.

Company that stared in Canada and expending in the US. The yield is still abnormally high. He thinks that they can still sustain that. They have been great at selling assets at good valuations. He thinks the yield is crazy and should get [through price appreciation] to more normal levels like 5%. They won’t cut the dividend as they have funding. (Analysts’ price target is $28.95)

It is the same cap as ENB-T as they are in the big utilities space. He was attracted to what they can do in the mid-east coast US. They can move gas to big US markets from within the US. The dividend is probably safe. He thinks it still offers great value.