Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Dividend Investors: Is Altagas Ltd. or Inter Pipeline Ltd. a Better Pick Today?

The pullback in dividend stocks is giving income investors an opportunity to scoop up some quality names at reasonable prices.

Let’s take a look at Altagas Ltd. (TSX:ALA) and Inter Pipeline Ltd. (TSX:IPL) to see if one is more attractive right now.


Altagas owns energy infrastructure in Canada and the United States. The appeal of this stock lies in its diversified revenue stream, both by geography and by business segment.

The company’s assets are roughly split 50/50 between Canada and the U.S., giving Canadian investors a chance to get some U.S. exposure without having to go through the hassle of buying American stocks.

Altagas also provides a nice balance across sectors with power, gas, and utility businesses.

This helped the company deliver solid Q3 2016 results. Normalized EBITDA jumped 41% year over year, and funds from operations (FFO) increased to $0.84 per share from $0.75 per share in Q3 2015.

Altagas grows through a nice mix of organic development and strategic acquisitions.

Of note right now is the company’s Townsend gas-processing facility, which began commercial operations in Q3 and should see an expansion come online near the end of next year.

The North Pine NGL project is also worth watching with an expected start date in the first half of 2018.

These new assets should boost cash flow and help support further dividend growth.

Altagas recently raised its monthly payout to $0.175 per share. That’s good for a yield of 6.5%.

Inter Pipeline

Inter Pipeline also has a diversified portfolio of assets. The company operates natural gas liquids (NGL) extraction facilities, oil sands pipelines, conventional oil pipelines, and a European liquids storage business.

The balanced revenue base has helped the company navigate the oil rout reasonably well, and management is taking advantage of the tough times to invest for the future.

Inter Pipeline recently closed its $1.35 billion purchase of two NGL extraction plants and related infrastructure from The Williams Companies. The assets were purchased at a very attractive price and should generate strong returns once the market recovers.

The company just increased its monthly dividend to $0.135 per share. Investors who buy now will pick up a yield just shy of 6%.

Is one a better bet?

Both companies are attractive income picks with reliable distributions that should grow as new assets boost cash flow.

At the moment, I would give Altagas the advantage for the higher yield and strong exposure to the United States.

Stock buy alert hits astounding 96% success rate!

The hand-picked investing team inside Stock Advisor Canada recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.

Fool contributor Andrew Walker has no position in any stocks mentioned. Altagas is a recommendation of Stock Advisor Canada.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.