AltaGas Ltd
ALA.TO (TSX)
AltaGas Ltd is an appealing option for investors seeking a utility stock with robust capital growth and midstream benefits stemming from increasing natural gas demand. With a solid dividend yield of 3.06% and impressive returns of 22.79% over the past year and 120.08% over five years, its strong cash flows and prudent debt management underline its attractiveness. Furthermore, analysts from TD Securities maintain a "Buy" rating, suggesting that the stock is undervalued at its current market price of CAD 41.58, with an intrinsic valuation indicating a potential upside.
Pros:
- Strong capital growth
- Midstream benefits from natural gas demand
Cons:
- Market volatility risk
- Dependence on natural gas prices
In summary, AltaGas Ltd (ALA.TO) presents a compelling investment opportunity for those seeking a blend of dividend income and capital appreciation within the utility sector, particularly for investors interested in natural gas markets. Its strong historical performance and favorable analyst outlook may appeal to both income-focused and growth-oriented investors looking to diversify their portfolios.