AltaGas Ltd (TSX:ALA) had a troubled 2018 with just about nothing going right for the company. But things have been much better this year and the stock has been off to a very good start. Although the company reduced its divided payments, the stock still pays a very attractive yield of 5.4%. Monthly dividend payments also make this an attractive option for investors that want something more frequent than quarterly payouts.
As an added bonus, the stock is still very undervalued and trading below its book value, at a price-to-book ratio of around 0.9. Year to date, AltaGas has risen by 28% and it still looks like an attractive buy given how far it has fallen in the past year. From a high of more than $28 per share back in July, the stock has crashed – hard. And a bad quarter where the company recorded a loss of over $700 million did little to convince investors things were going well after a big acquisition.
Now, with the company focusing on the U.S. market, however, there might be a lot more upside for the stock over the long term. A strong economy south of the border could unlock many growth opportunities for AltaGas and the stock could continue to build on this strong momentum as that happens.
As a dividend stock, AltaGas is a very attractive opportunity given its strong yield. Throwing in a lot of potential into the growth equation helps give investors the best of both worlds. And best of all, the stock is also very well priced and investors won’t have to worry about overpaying for AltaGas.
