5 Reasons to Buy and Hold This Canadian Stock for Life

Altagas Ltd. (TSX:ALA) is one of Canada’s energy success stories. In fact, this Canadian stock has a history of strong performance, both from the perspective of capital appreciation and dividend payments. It represents a relatively low-risk way to gain exposure to the long-term trend of growing North American and global energy needs.

Without further ado, here are five reasons to buy and hold this Canadian stock for life.

Altagas – strong results

In the first nine months of 2025, Altagas’ earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 21% to $1.4 billion. In the third quarter, cash from operations increased 62% to $34 million. The midstream segment accounted for 44% of total EBITDA, and the utilities segment accounted for approximately 56%.

These results are benefitting from continued strong demand in both segments, as well as Altagas’ continued expansion to meet this demand.

Diversification

Altagas operates in two segments – utilities and midstream. These segments each have their own growth and risk profiles, making Altagas stock a well-diversified, stable opportunity for investors.

The utilities segment is the ultra-defensive segment that benefits from regulated cash flows. This segment is positioned for strong long-term growth. This will continue to come from rate increases, new customers and population growth, as well as the expected boost in energy demand from data centres. In fact, analyst estimates are calling for data centre power demand to triple by 2030 and to be 10% of US power demand by the end of this decade.

LNG opportunity

The midstream segment is the higher growth one. The liquified natural gas opportunity remains strong, and is boosting the long-term outlook for Altagas’ midstream segment. Today, three Canadian LNG projects are now up and running, and Altagas has positioned itself well for this growth.

LNG growth is being driven by strong demand from Asia. Altagas continues to invest in new projects in order to take advantage of this growth. The company has a strong history of being on time and on budget, and these projects are working out similarly.

Altagas’ dividend

Altagas stock is currently yielding a very respectable 3%. This dividend is backed by the company’s strong, diversified business and healthy balance sheet. In the last five years, Altagas’ dividend has grown by 26.5% – or at a compound annual growth rate (CAGR) of almost 5%. The company’s payout ratio is at 50%, and from a cash perspective it’s much lower.

Altagas is currently spending on new growth projects to meet the strong demand that it is seeing in both segments. This is a good thing as it will drive stronger dividend growth once these projects are up and running and delivering additional cash flows and earnings.

Outlook

Altagas’ 2026 guidance is looking robust. The company is guiding toward an 8% growth rate in EBITDA, a 6% growth rate in earnings per share (EPS), and a 6% growth rate in its dividend. Analyst expectations are calling for an even stronger EPS growth rate of 14% in 2027.

The bottom line

Altagas is on a very positive long-term growth trajectory. It’s supported by industry growth trends and by the company’s own strategic positioning over the last few years. Everything seems to be falling into place, positioning Altagas as a Canadian stock that will thrive in the long term.

The post 5 Reasons to Buy and Hold This Canadian Stock for Life appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has a position in Altagas. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.