You Shouldn’t Care About Altagas Ltd.’s Stagnant Share Price So, why shouldn’t you care about Altagas’s stagnant share price?
The company currently yields close to 7% with a payout ratio of about 88% this year. You can’t find many stocks with sustainable high yields on the market that are trading at reasonable valuations.
The shares currently trade at about 9.1 times Altagas’s cash flow for this year, which is at the low end of its historical trading range in the last few years. If you can grab the shares at a 7% yield, you can double your investment in a little over 10 years — without needing any price appreciation (or dividend growth for that matter).
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