Altagas Ltd (ALA.TO)

Technically, this has been in a trading range for almost 18 months. This tells you it doesn’t have the momentum you would like to see for a seasonal trade. On a chart like this, wait until there are signs that there is positive momentum and positive performance relative to the market.

It has a good yield of 6’ish percent. Valuations in these types of companies have been rather high as defensives, low interest sensitive, and low volatility did well. There were rumours they would buy WIG and the stock could be under pressure if the deal was consummated. For him it is too highly valued for the growth profile. You own it for the yield.

He is lukewarm on this as he has others that have better growth, however there is nothing wrong with this one. You own it for the dividend and you get a little bit of growth. It has a utility side to it as well as a power side. He is lukewarm because of a lack of strong growth. His favourite in the group right now, would be TransCanada (TRP-T). Dividend yield of 6.2%.

He is a large shareholder and continues to like it. It has been negatively impacted by the threat of rising rates. It has a tremendous power generation portfolio. A lot of their assets will deliver tremendous growth. They have 20 plus year power purchase agreements. You will continue to see income growth. The sell off is from commodity pries and represents 20% of their business so represents a buying opportunity. It has an attractive yield.

Energy infrastructure, and there is always a need for these types of companies. As oil and gas companies drill they need to process the natural gas and liquids. Prefers Pembina (PPL-T) and Inter Pipeline (IPL-T). As natural gas prices improve, there will be increasing demand for what they do. Dividend yield of 6.2%.

Thinks the dividend is sustainable. Operating in the oil/gas industry, clearly has some cyclical influences, but they are a service provider rather than a producer. With the gathering systems of pipelines and plants, a lot of the fees are fixed and well protected for the dividend. Growth will depend on what is happening in natural gas prices, and partly to the oil price. At this stage, we are clearly coming off the bottom, so he can see upside from here. Dividend yield of 6.37%.

3-year hold? He thinks you are fine with this. Primarily natural gas distribution. The only thing to be concerned with is that the debt load is quite high. They have about $2 billion worth of projects that they are waiting for the final investment decision on. His concern is that if they get those approved, the debt levels are already pretty high, and they are probably going to have to issue some equity to fund it. That will be dilutive to their per share growth over the next 3 years. A solid company and he thinks you are safe here. Dividend yield of 6.5%.

He likes the name. The dividend is high, but he feels it is safe. A lot of their contracts are inflation protected. 6.5% is a good return.

Market Call Minute.

He believes in this firm. Now that Trump is in power, here come the pipelines. TransCanada (TRP-T) is probably going to get Keystone. He is expecting a little jump in all the pipelines now.

(A Top Pick Nov 10/15. Up 2.81%.) This has been kind of flat over the past year, and should be doing better.

The great thing about this is that he recommended it exactly a year ago today, and it hasn’t moved much, so you can buy it for the same price and they have increased their dividend. He can’t figure this one out. It is a great company with solid assets. It is actually 60% utilities and power generation. Good cash flow, and the dividend yield of 6.54% is well covered.

A high quality company. They are very exposure to the Alberta economy, but not completely to the commodity cycle. A lot of their plants are run on fixed contracts. They are usually well insulated. He has become more cautious and moved away from it due to macro thinking on ‘bond proxies’. These stocks are trading at very high multiples. You want more pro-cyclical exposure.

The dividend is safe. It is a bit of a highbred because it has the utility side it. This is not a bad entry point, but he prefers ENB-T. Prefers ENB-T

It recently broke a trend. A break out above $35 would be really positive for the stock. They had decent results recently. They have strong portfolio growth opportunities. 6.3% dividend yield.