Altagas Ltd (ALA.TO)

(A Top Pick May 14/14. Down 15.04%.) Has held up quite well. He is in it for the long haul. Has a good dividend. This is a good opportunity to accumulate.

He likes this company. It has LNG exposure, which was looking a little soft lately. Had thought it was overvalued, but now it is a little fairer value and with a dividend increase, it probably hangs in here. Would like to see some LNG specifics. The pipeline infrastructure side is fine.

His company has this with a $43 target. Some caution should be given because where are they going to generate any positive earnings. He is not selling right now. If you don’t own, there are better alternatives.

(A Top Pick April 4/14. Down 2.34%.) This continues to be a core holding. Have a really defensive business model in a low commodity price environment. Only about 10% of their EBITDA is exposed directly to commodity prices. The other 90% is contracted or regulated assets. They have a number of catalysts that could come out this year that will be positive for the share price including a final investment decision on their LNG project in BC, more announcements on their LPG exports to Asia and their natural gas plant in California is looking at an expansion. Have been growing their dividend and she thinks there is still dividend growth to come. They have about $1.5 billion committed to capital growth in the next 3 years. A very good balanced diversified asset base, a 3^rd in utilities, a 3^rd in natural gas processing and a 3^rd power generation. Long-term, good holds in a good quality company.

In an energy portfolio, you always want to have a weighting towards energy infrastructure. He thinks this is a part of the market that is going to see considerable capital flows as the business grows in North America. There is an ongoing need for additional capacity to de-fractionate natural gas liquids from liquids rich gas drilling. This is a huge growth area, and the infrastructure has to keep up with it.

A great business and one of his preferred names in the energy infrastructure space. Likes their diversified business model. It allows them to deploy capital through multiple different cycles. Great management team. Expects they are going to announce several large projects over the 2^nd half of this year or early next year. Thinks they can give you 10% dividend growth. He is a big fan of this.

Likes it in the mid-stream area. Good diversification of regulated gas utilities. They have been growing at a very good rate and he is happy to hold it here.

The Bull case for this is that it is a company with very long visibility on their revenue. The downside is that it wears the halo of energy, so realistically while they are much more predictable than a producer, service company or an equipment company, there is concern in the near term, given what is happening with commodities.

These companies have done really, really well because they have been increasing their dividend, and people like to buy that dividend growth model. These are highly interest rate sensitive vehicles that are trading at very, very lofty valuations, because people have gone after the dividends in a big way. You have to be really careful as these are not rapidly growing businesses. At the slightest hint of increasing interest rates, this is going to take a hit. He likes this and thinks it is trading at fair value here, but it is not cheap and the dividend yields are probably not sustainable. Dividend yield of 4.2%.

Got hit especially hard in the 4^th quarter, because of its name. Dividend prospects are good. Have good projects coming on, including some Hydro ones in BC. Dividends are likely to grow in the high, single or low double digit area. Have some good opportunities in liquefied petroleum gas as well as liquefied natural gas.

Great company. She has seen a lot of weakness in the stock because of what has happened in the energy sector in general. Unfortunately, they have been thrown into the camp of volatility, while their business doesn’t actually justify that. There are some potential short-term weaknesses, as they do have some investments in the energy space that has some direct impact to what happens in the commodity. Those kind of short-term downsides represents a buying opportunity. She sees a lot of growth opportunities in this company in the next 5 years.

He feels the dividend is quite safe. It is more of a utility. It is focused pretty well just in Alberta and if you think they are going into a period of lower growth than it may not be positive. ALA-T is a well run company.

60% of their current business is power generation and distribution. They are actually a hybrid type of utility company and pipeline. Some of their future growth projects are related to LNG and natural gas, more so than oil. Thinks it has been treated unfairly. Dividend yield of 4.35%, and he is looking for another dividend increase this year of 10%-15%. A good long-term investment opportunity.

(A Top Pick Dec 20/13. Down 0.84%.) The upside is dependent on the LNG story. They have the only gas pipeline going into Kitimat and are going to twin it. They will have the 1^st, although very small, LNG plant on the West Coast in Canada. He likes this a lot. Pays a good dividend of around 4.5%, and feels it is solid value here. He wouldn’t have any hesitation on buying at this price.

He is a big fan and this would be one of his Top Picks. It has been punished alongside the energy sector. Below $40 is an excellent entry point. Dubbed as an energy infrastructure company, except that the vast majority of its cash flows are very utility like. EBITDA is going to double over the next few years on fully funded growth. Has a high degree of visibility with respect to cash flow increasing and dividend growth through to 2017-2018. Trading in line with some regulated utilities, and will be able to really benefit from an increase in energy infrastructure spending if you see oil and gas prices go back up, especially LNG related spending, post 2018. 4.4% dividend yield.