RE:Top Pick on BNN Market Call Today :>) Altagas (ALA TSX)
Keeping with the theme of Western Canadian natural gas infrastructure, Altagas is also well off 52-week highs and has significant volume exposure to LNG Canada through its gas processing plants in northeast British Columbia. Counterparties have improved dramatically and LPG export volumes are poised to grow as well. This says nothing about its very stable us utility business which provides an above-average return on equity with a well below-average multiple. Finally, Altagas will be able to sell its interest in the Mountain Valley Pipeline over the next 12-18 months providing further improvement to the balance sheet. The company continues to be misunderstood so investors can purchase today near 52-week lows at a nearly five per cent dividend yield with mid-single-digit dividend growth and very little downside risk while value is surfaced in the years to come.