Altagas Ltd (ALA.TO)

if you buy for the yield, then you won't get much else. If the yield doesn't rise, then inflation will grind away at it. Who knows when the WGL deal in the U.S. gets done, if it does? Doesn't see stock price appreciation. No downside protection here either. So, he'd rather buy its bonds.

Problem is their acquisitions: major U.S. one with a lot of debt. The pending deal with WGL Holdings is weighing on the stock. Not worried about the high dividend above 9%.

Your first reaction with seeing the 9% yield is that it's in trouble. ALA is awaiting US approval of the
WGL utility deal, carries a high debt and was unable to sell a holding recently. But he believes the deal
with go through and ALA will sell off assets to reduce their debt. This is an opportunity.

They own this already and are a little concerned of the recent break down below $26. He believes the dividend is safe. It may take a year for it to find its legs. He sees $32 as an upward target. They just raised the dividend. Yield 9.1%. (Analysts’ price target is $28.82 )

He continues to feel good about the long term prospects. Last week they said they had a process to sell some assets. Management are confident on the acquisition.

The stock came off because they are making an acquisition and to fund this they need to sell some assets. It created uncertainty how this would be accomplished. Dividend yield of 9% is on the high side. Seems to be sustainable but typically when dividends go over 7% creates uncertainty. (Analysts’ price target is $29)

Lately, the share price has been challenged. He thinks the WGL acquisition in Washington will happen likely by mid-year, though may get delayed. Their recent quarterly report and dividend were both fine. But they did announce they didn't sell their California assets. This is in an iffy market as interest rates rise. Dividend is okay. They have lots of good assets.

There’s nothing particular wrong with this company. It still has pending regulatory approvals that have been resolving more slowly than expected. Management is good and he thinks the acquisition they made is strong. (Analysts’ price target is 31.20$)

Wait for the actual demand that is expected in the air conditioning season. We have seen an overall downtrend, but it is still not a bad play.

Is the dividend sustainable? He sold their position about three weeks ago. They made a massive acquisition with WGL, but it has not been finalized and that has been a problem – he thinks it may take a year to get regulatory approval. They loaded up with debt for this transaction, which may require them to sell some of their assets later on. Overall, he likes the acquisition and the company.

He's seen all the power names come down even before the downturn. Dividend will likely be fine. He doesn't own it (owns Fortis and Emera instead). This space has been oversold. People are overly sensitive about interest rates rising. Could see a bounce, but doesn't expect that in the short term. 8.2% yield.

There have been concerns with the company and operations over time. The decline in 2017 has turned into base building. Natural Gas tends to do well in March. This is probably not a bad time to buy if we see it start to pick up a bit.

Getting shy with all utilities. First time in many years he's been cautious in this sector, because interest hikes are finally coming. So, ALA's debt service could go up. No to Altagas for now, though maybe buy later.

It has struggled because it is equated with energy. It also is increasingly a utility company. He loves their assets. 7.8% yield and they just raised the dividend. At some point the true asset value will show.

Pembina Pipeline (PPL-T) or AltaGas (ALA-T)? He doesn't particularly care for one over the other. In terms of safety, he would probably prefer Pembina, although the yield isn't as good. This one has a dividend that isn't covered, and increasingly you are getting oil/gas companies that are cleaning up their act to get their financials under control, cutting the dividends tends to be high on the list of things to do. Looking at their balance sheet, that would be a good thing for this company to do.