Scotia Bank CommentsWe expect the dividend to remain flat. With a 10%+ yield the market appears to be pricing in the potential for a large dividend cut. That said, we expect the company will maintain its dividend moving forward. In H1/18 AltaGas’ DRIP participation rate was north of 66% and moving forward we see the $0.6b of annual dividend payments being satisfied with $0.4b of new shares. As such, a dividend cut would not meaningfully affect its funding situation. In terms of payout ratio we see AltaGas’ being at the upper end of its targeted range of 50%-60% moving forward. Looking at free cash flow (which we classify utility depreciation as maintenance capital) we see the payout ratio around 90%.