5 reasons to buy and hold these Canadian stocks 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 a capital growth and dividend distribution perspective. 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 these Canadian stocks for life.

Altagas – strong results

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

These results benefit 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 shares a well-diversified, stable opportunity for investors.

The utility sector segment is the ultra-defensive segment that benefits from regulated cash flows. This segment is positioned for strong long-term growth. This will arise from rate increases, new customers and population growth, but also from the expected increase in energy demand from data centers. According to analyst estimates, data center power demand will triple by 2030 and reach 10% of U.S. power demand by the end of this decade.

LNG opportunity

The midstream segment is the segment with the highest growth. The liquefied natural gas opportunity remains strong and improves the long-term prospects for Altagas’ mid-market. There are currently three Canadian LNG projects operational and Altagas is well positioned for this growth.

LNG growth is driven by strong demand from Asia. Altagas continues to invest in new projects to benefit from this growth. The company has a strong history of being on time and on budget, and these projects are progressing the same way.

Altagas’ dividend

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

Altagas is currently investing in new growth projects to meet strong demand in both segments. This is a good thing as it will lead to stronger dividend growth once these projects are operational and generating additional cash flows and income.

Outlook

Altagas’ 2026 guidance looks robust. The company targets 8% growth in EBITDA, 6% growth in earnings per share (EPS) and 6% growth in dividends. Analyst expectations call for an even stronger earnings per share growth rate of 14% in 2027.

The bottom line

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