AltaGas
AltaGas (TSX:ALA) offers a monthly dividend of $0.08, which translates into a forward dividend yield of 5.9%. The company runs a diversified and relatively low-risk business, which ensures steady payouts. For starters, AltaGas’s rate-regulated utility business accounts for 75% of its total revenues.
Investors should note that the majority of its revenues in the utility business are deeply anchored by decoupled rate structures and fixed distribution charges. The predictable cash flows from its utility business ensure safe and steady payouts.
AltaGas expects its rate base to increase by 8-10% annually, indicating consistent growth in its cash flows. While the utility business safeguards the dividend payouts, its midstream business paves the way for future dividend growth. The company’s midstream business could grow at a breakneck pace in the coming years, thanks to the expected increase in volumes and utilization rate. AltaGas’s Ridley Island Propane Export Terminal is likely to accelerate its growth and drive its future payouts.
Also, AltaGas stock is undervalued. The stock trades at a forward price-to-cash flow ratio of five, which is lower than the industry average of 7.3.
The post Supplement Your Monthly Income With These 3 TSX Stocks appeared first on The Motley Fool Canada.
Actionable Items
I have to think about and compare to VSE and HSE stock. If I should purchase 1000 share until SPX goes down below 3000.
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