Altagas Ltd (ALA.TO)

(Top Pick Jan 16/15, Down 16.01%) He was adding in January. It was too oversold. He still likes it long term. Lots of revenue from regulated utilities.

Just announced they have halted work on their LNG developments in the Prince Rupert area. They do have potential to export gas internationally through the US, which they are already doing. Doesn’t expect they will cut their dividend because of this. Still feels it is good value. Wait a while to see what else emerges before adding to your position. Dividend yield of 6.1%.

This is doing quite well in this environment. Has been able to grow its EBITDA this year. One of the lowest payout ratio companies in its universe. This presents an opportunity for people that are looking for a safe yield. The 6.5% dividend is absolutely safe.

They have more and more operations trying to ship LNG out of the West Coast of the US. Nothing wrong with the company. This has been lumped in with the energy sector, so seems to have been hurt by that comparison. Have long “take or pay” contracts, so the operations are very stable. Prefers Inter Pipeline (IPL-T). Great yield of 6.25%.

Valuation is beginning to look fairly reasonable. Just announced they are going to sell their non-core natural gas and processing assets to Tidewater (TDW-N), and going to end up owning almost 20% of that company. It looks like management has been taking strides to enhance the productivity of the assets that they have. Dividend seems to be very well covered from available funds of operations. Looks like a reasonably good company to own.

They are a little step away from energy being a utility rather than a producer. Feels LNG is going to be one place where there is going to be some success. Suspects this stock has pretty much hit bottom here. A good, long term prospect. Good operators. 6% dividend yield, and doesn’t think there is any chance it is going to be cut.

An energy infrastructure company. Get a lot of revenue and EBITDA from utilities, midstream and contracted power. 50% of EBITDA comes from the US. Recently announced they are going to try and sign an agreement with the Prince Rupert Port Authority to export propane. They are already doing this from Washington State. Has the only natural gas pipeline to the BC coast, and this is not getting properly reflected in the market. Has gotten beaten up a lot from lower commodity prices, but they have less than 1% exposure to commodities. Great valuation. Looking for steady dividend increases after 2016. Dividend yield of 6.42%.

A core holding that he loves to own, but this is also one he is waiting to get into. Got stopped out last fall. His concern is the Alberta economy. Doesn’t feel the time is right yet.

The whole utility infrastructure sector is being hit because of the price of oil. Doesn’t think investors realize this isn’t about price, it is about volume. If oil prices stay low for an extended period of time, the volume will eventually decline. Raised its dividend last year. It is priced very attractively. The dividend is nice and is fairly secure. A pretty good investment right now, but you have to be able to stand this crazy energy cycle. Dividend yield of about 7%.

(A Top Pick Dec 2/14. Down 20.29%.) Has a wonderful yield that he can see continuing to go up. This has been put into the energy sector, but it is as much a utility as an energy stock. Have hydro plants they have just brought into BC. Very stable revenue, very stable cash flow and a very stable dividend. The 6% dividend looks awfully good today.

The last 6 months has been brutal for the stock, but it is now getting closer to FMV. His model price is $27.28, a 7% downside from the current price. It probably pulls back to $24.24. Look for further compression on the price. If it got to $24.25 it would look like a pretty good deal to him.

A utility, but is suffering from being in Alberta. They are involved in the potential export of LNG. Good management. Feels the dividend is safe.

Infrastructure still has to get built, but they are able to do little pieces here and there and it is a great little business that can grow along. Thinks that business can incrementally grow over time. Dividend yield of 6.3%.

6.2% yield. Infrastructure company. Good growth projects. They have a small exposure to Alberta power. It is a coal powered plant, but it contributes nothing to their earnings. It is well managed and he does not understand the short thesis. He continues to buy it.

This is a Short for him based on its valuation characteristics. It is a utility like yielding stock that had a large flow of funds into them because they were defensive and viewed as being safe. Beyond that there is not much beyond the yield that supports the valuation.