1 Top Dividend Stock to Buy and Hold for 10 Years

Are you scouting for dividend stocks outside the traditional staples for passive income in 2026 and beyond? AltaGas (TSX:ALA) deserves serious consideration. Its rising earnings and accelerating growth rates indicate a quality business amid heightened market volatility. This energy-utility hybrid qualifies as a buy-and-hold stock for the next 10 years.

ALA outperforms the broad market year to date, up 14.3% versus +0.54%. The current share price is $47.50, with a dividend yield of 2.79%. Its hybrid profile stems from a powerful twin-engine: Utilities and Midstream.

Financial performance 

AltaGas is coming from a record-breaking year. In the 12 months ending December 31, 2025, revenue and net income applicable to common shares increased 2% and 29% year over year to $12.7 billion and $747 million, respectively. Its president and CEO, Vern Yu, said, “2025 was a year of strong execution and disciplined delivery for AltaGas.”

Yu noted the strong performance across the Utilities and Midstream businesses, resulting in a 5% increase in normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) to $1.9 billion compared with 2024. The diversified platform operates long-life energy infrastructure assets that ensure resilient, growing shareholder value.

Dividend sustainability and growth

In December 2025, the $15 billion energy infrastructure company announced a 6% dividend increase, the sixth consecutive increase in as many years. Its compound annual growth rate (CAGR) guidance on is 5% to 7% through 2030. Notably, the payout ratio of 50% to 60% of normalized earnings implies dividend sustainability. The organic cash flow supports the dividend guidance.

Moreover, management aims to deliver resilient, growing normalized EBITDA and earnings per share (EPS) while maintaining financial leverage. This strategy supports steady dividend growth and leaves ample room for capital appreciation for long-term investors.

Export advantage

AltaGas is constructing the Ridley Island Energy Export Facility (REEF), which is expected to be operational by year-end 2026. In phase one, the large-scale liquefied petroleum gas (LPG) and bulk liquids export terminal will export propane and butane to global markets.

REEF and its West Coast shipping advantage will help AltaGas establish a dominant position in Asian markets. The volume of propane and butane exports to Asia is projected to grow 40% to 50% between now and 2040. Phase one of the multi-stage project will generate an estimated $278 million for the federal and provincial governments. REEF will export bulk liquids, ethane and other products after phase two development.

So far, net income is rising every year since 2023. The same is true for dividend growth. More importantly, the business never slows. Historically, when one engine slows, the other accelerates. For 2026, AltaGas plans to fund the approximately $1.6 billion capital program with internally generated cash flows and debt. It will allocate 69% and 27% of the total to Utilities and Midstream. The rest will go to other business concerns.

Next-gen dividend elite

AltaGas could join the ranks of TSX dividend elites such as Enbridge, Toronto-Dominion Bank, and Fortis. The compelling reasons to invest are: stable earnings, long-term organic growth, and growing dividends. ALA is a potential anchor stock for sure.

The post 1 Top Dividend Stock to Buy and Hold for 10 Years appeared first on The Motley Fool Canada.

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More reading

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• 3 Canadian Stocks Perfectly Positioned for the Infrastructure Boom

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.