AltaGas (TSX:ALA): Assessing Valuation After a Confidence-Boosting 2026 Dividend Hike

AltaGas (TSX:ALA) just gave income investors something concrete to chew on by approving a 6% dividend hike for 2026 that pushes the annual payout to CA$1.34 per share and reinforces its earnings confidence.

See our latest analysis for AltaGas.

That confidence is already showing up in the trading tape, with a 29.19% year to date share price return and a powerful 180.09% five year total shareholder return suggesting momentum is still building despite short term noise around labour issues at its export terminal.

If AltaGas’s steady climb has you rethinking your portfolio, this could be a good moment to broaden your search and discover fast growing stocks with high insider ownership.

With shares now trading near analyst targets but still at a hefty discount to some intrinsic value estimates, investors face a key decision: is AltaGas still an underappreciated cash machine, or has the market already priced in its next leg of growth?

Most Popular Narrative: 6.1% Undervalued

With AltaGas last closing at CA$43.20 against a narrative fair value of CA$46.00, the story leans toward modest upside built on disciplined growth assumptions.

AltaGas's growing LPG export platform (RIPET, Ferndale, and REEF construction with proven commercial support and phased optimization/expansion plans) aligns with increasing Asian demand for low carbon transitional fuels, creating diversified, higher margin revenue streams and margin expansion opportunities.

Read the complete narrative.

Curious how steady top line growth, thinner future margins, and a richer earnings multiple can still add up to upside from here? The narrative joins the dots, and the math, in ways the headline price does not.

Result: Fair Value of $46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, policy driven decarbonization and AltaGas's reliance on Western Canadian supply and Asian LPG demand could quickly challenge the current upside narrative.

Find out about the key risks to this AltaGas narrative.

Build Your Own AltaGas Narrative

If you see the numbers differently or want to pressure test the assumptions yourself, build a custom AltaGas story from scratch in just minutes, Do it your way.

A great starting point for your AltaGas research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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