Altagas Ltd (ALA.TO)

Looking at this in relation to other companies in the midstream space, this is one of the better ones. Have tremendous growth and a reliable and growing dividend. Well managed consistently, over a long period of time. Valuation is too high. (See Top Picks.)

Likes it. Street target is just above where it is now, but his target is above that. A couple of years out it could be considerably higher than it is now. If you are overweight, then trim a bit.

One of his favourite pipelines. Has the only gas pipeline to the BC coast and is going to expand it. Also, has a flagship electric energy project coming on that will give it some real cash flow boost. Anticipates that it is in a good position of growth over the next 3-4 years. Could see $43 in a year. Yield of 3.77%.

In any income and infrastructure portfolio this is core. Business segments are split between clean energy, gas and utilities. Have a huge project coming on next year and she would recommend viewers to go on the company’s website to see the video for the Forrest Kerr project. It is phenomenal. It will add $100 million in EBITDA to their bottom line on a $350 million base.

(A Top Pick June 6/12. Up 43.53%.) This company has a lot of growth levers behind it. Pretty close to the end of their Forrest Kerr hydroelectric project that they are bringing on stream. Since then, they have filled in the growth opportunities in their power business. Have a lot of opportunities on the LNG side and the PNG side. Outlook on this company is still very, very positive.

Energy infrastructure plus it has utilities and hydro power. In 2014-2015 they have 3 power projects in BC coming on, which will stabilize their earnings a little bit. Have about $2.5 billion in CapX coming on in the next 4 years, primarily in the energy side. This will see growth in earnings and growth in dividends. He is expecting it to be a 10% dividend grower.

Alberta/BC premiers like LNG going to the coast and then to Asia. A bottleneck gets alleviated, but it takes 3 or 4 years. This one will participate in that as well as some of the pipelines. Likes the play and thinks there is growth there.

Relatively expensive. $29.71 model price, -16.8% differential. Good yield over 4%.

Part of the overall decline in dividend stocks. A capital intensive business that will come under pressure when interest rates rise again.

(A Top Pick September 18/12. Up 10.79%.) Of the infrastructure companies, there are probably 3 or 4 that he prefers over this one. This is the most utility like of the bunch. They have some very attractive growth assets as well. They’ll continue to grow the dividend. There’s a good chance it will have a pretty good fall.

(Market Call Minute.) Has come under pressure recently and he would be looking at it at around $33-$34.

(A Top Pick May 23/13. Down 7.88%.) Still likes. Came off with all the pipelines when interest rates went up. This company is growing and you are going to get rewarded for the growth. Have a hydro project in BC that will be coming on next year, which will be a huge cash flow infusion into the company. They will be able to increase their dividend and will also be able to fund some of their other growth initiatives. Planning on increasing their West Coast pipeline significantly for future LNG.

(Market Call Minute) You want to be in these pipeline companies.

(Market Call Minute) He reduced position somewhat but like the company going forward.

Excellent growth story. More sensitive to a rise in yields than a lot of other names. Have a lot of debt that is coming due in the next 1 to 7 years.