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RRSP Investors: AltaGas (TSX:ALA) Is a Top Canadian Dividend Stock for Your Retirement Income

Retirement is a time in our lives when we can finally take a pause and refocus our lives. For some, this will mean more travel or more comforts here at home. Whatever it means to you, the fact is, we need income to replace our employment income as we strive to live life to the fullest.

Thankfully, we have numerous quality dividend stocks to help fund your retirement lifestyle, collect regular and reliable dividend payments, and enjoy a retirement without money worries.

Here is a top Canadian dividend stock for your RRSP that will provide this for you.

AltaGas (TSX:ALA)

AltaGas is a dividend stock that is in the stable and steady energy infrastructure business in North America. This is why the stock’s volatile performance in the last year or so was anything but expected. It has truly been a roller-coaster ride.

But last week, AltaGas reported its first-quarter 2019 results that were in line with expectations, showed strong financials, and sent its stock soaring more than 4%.

Let’s dig deeper.

EPS came in at $0.73 compared to $0.40 in the same quarter last year for an 83% increase. Normalized EBITDA came in at $466 million compared to $223 million in the same quarter last year for a 109% increase. And 2019 guidance was reiterated, providing yet more confidence in the company and the stock.

So, yes, those investors that bought in when the stock was trading at approximately $30 in the last two years lost almost 40%, but the company has reset with a reduction of its dividend and has rallied 54% year to date.

Again, it’s not the ride most investors who invest in AltaGas were probably expecting, but going forward I think we can expect the stock to provide us with the lower volatility, steady, dividend-paying profile that RRSP investors often look for to provide them with their retirement income.

The current dividend yield on AltaGas stock is 5.15%.

Lastly, AltaGas announced that is has reached a deal to sell its interest in the Stonewall gathering system for US$275.3 million. Recall that another $1.5-2 billion in asset sales are planned.

Final thoughts

AltaGas stock is returning to its position of a safe and steady dividend-paying stock that is perfect for RRSP investors to help them generate their retirement income.

With a very healthy payout ratio, dividend yield, and growth profile largely due to it WGL acquisition, the future looks bright and safe.

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Fool contributor Karen Thomas owns shares of ALTAGAS LTD. AltaGas is a recommendation of Stock Advisor Canada.

 

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