AltaGas Ltd T.ALA

It has taken

[BSdetector2016]

over three years to get back to its mid-slide 2018 share price, and the dividend is a joke. Bottom-feeders are happy; long-term income-seeking shareholders are not.

[Johnwith30years]

.. But they will be if they continue to be long term holders  IMO   There was a time a few years ago when the high dividend was flashing danger signals  so long term investors do not want the highest dividend - they want the highest sustainable dividend  n'est pas? 

[BSdetector2016]

They certainly didn't want Cornhill et al to grossly overpay for a US utility with aging infrastructure, and then be forced to sell great assets to pay for their bad decision. 

[Johnwith30years]

They sure didn't.  Agree.  My work was essentially done following the big drop after they had purchased. But overpaying isn't the end of the world if one can build the value over several years.  That is what I think Randy is doing now.  What would make you change your mind about selling ALA?   I think you once mentioned a xertain price - does that still hold..

[jeffpei]

 I will slowly divest in 1.00 increments starting at 27.50 if the div increases that I expect are not made. But I intend to keep a weighted average in my portfolio for long term potential growth. I expect a year from now to see 32.00/share. (I am still quite overweight, but no regrets since my average cost is 18.50.)

[Johnwith30years]

Hi Jeffpei. Suggest you confirm if company policy is to change dividend after their December Guidance for coming year or if board does it at any time. Be a shame to miss a nice dividend boost if it is coming year end. A call to investor relations should tell you. I'd be interested in answer if you find out.  GL

[jeffpei]

John, I'll be patient and listen to the next conference call for any hints, but I expect annual increases, but will they boost the div to 4+%? Most important is continued share appreciation, but I do love dividends in my RRIF and Investment accounts. They are the foundation in funding our retirment.  

[Johnwith30years]

I agree div important. I just think it possible they come at end of year.  And then of course it's always total return that matters because if shares doubled you could always sell off a few to get your own dividend increase. 

[jeffpei]

Time will tell...Either way, It's been a great recovery since I first bought ALA at 27.00 3 or so years ago. At that time, I never expected to end up buying such a large weighted position as the stock collapsed.

[Johnwith30years]

Lol. I know exactly what you mean but it's working out very well. GL

[farlharv]

Well stated John. I would add that if AltaGas keeps the increasing cash flow their P/E should remain consistent. Pay down debt or use it for growth projects. Share price rises Share price appreciation over the last 6 months has far exceeded the income from dividends. Dividends have produced $1 a year and Capital Gains $6.50. Capital Gains are taxed at lower rates than dividends. Dividends

[jeffpei]

also well stated and a reminder of how good this "hated "stock has been!

[jeffpei]

Yes. Sustainability and long term annual divy increases for me please!