Altagas Ltd (ALA.TO)

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.

It is a diversified business model of power, gas and regulated utilities. This will be one of the highest dividend growers (10% over next 3 years). Projects they commissioned will be coming on line. Have one of the lowest payout ratios amongst their peers. You will see a bump up in cash flows and payout ratio. They have the quickest chance to get a LNG projects up and running.

This is one that he would consider adding at this point.

Good, mid-streaming company. More stable than your typical oil/gas producer, because they are not as affected by oil and gas pricing. A little bit expensive here and will probably drift down with sentiment with the oil/gas producers over the next 6 months. If it got back to the $30 level, it would be pretty good value.

Some of these energy stocks are trying to show signs of a bottom. The October low has certainly held and has bounced up quite aggressively from that level. If that low holds, that might be your tradable low for this company and other energy stocks. This is potentially a double bottom, a good sign for a possible trade in to the end of the year. You want to entertain this more towards the period of seasonal strength, which starts mid January, but for now it looks like a great trade.

Although this is in the energy sector, he looks at it as more of a utility company. They have a couple of Hydro projects in BC. This has allowed them to raise their dividend and he sees this going up quite substantially now that the power plants are up and going. At some point, they could move this out of the energy sector and into the utility sector, and it would be one of the top growing utility companies. Dividend yield of 4.27%.

(A Top Pick Dec 20/13. Up 14.69%.) One of his favourites. The only people with an LNG project. Although very small they will have it in operation before anyone else. Have a gas pipeline to the West Coast. Have a lot of projects underway. Good management. Doesn't think a mid-$50 target is unrealistic. There are a lot of projects ahead of it. A really good Buying opportunity in the mid-$40.

(Altagas (ALA-T) or Emera (EMA-T) as a core stock for the long-term with a growing and sustainable dividend?). This has been one of his personal favourites. It has a combination of midstream and utility assets. Has a tendency to do a lot of financial engineering, and effectively that sometimes creates a discount to the stock. Feels the value is in Emera, mainly because of its ability to raise dividends consistently and grow its earnings-per-share numbers.

The market could still have some volatility. Chart shows it has broken its longer-term up trend, so there might be some congestion here. If you love this company and want to be there, it is okay to step in at this point.

He always tries to own some infrastructure. These are great long term investments. The problem is that the valuation is extreme. A great company that is on his list, but he finds others elsewhere that are cheaper.

It is sitting on support and you need to see it hold at these levels. Their business has become more regulated in the past few years. They have a big pipeline of opportunities going forward. He has no problem buying more in low parts of a trend.