Are you scouting for dividend shares outdoors the normal staples for passive earnings in 2026 and past? AltaGas (TSX:ALA) deserves critical consideration. Its rising earnings and accelerating development charges point out a high quality enterprise amid heightened market volatility. This energy-utility hybrid qualifies as a buy-and-hold inventory for the subsequent 10 years.
ALA outperforms the broad market yr up to now, up 14.3% versus +0.54%. The present share worth is $47.50, with a dividend yield of two.79%. Its hybrid profile stems from a strong twin-engine: Utilities and Midstream.
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Monetary efficiency
AltaGas is coming from a record-breaking yr. Within the 12 months ending December 31, 2025, income and web earnings relevant to widespread shares elevated 2% and 29% yr over yr to $12.7 billion and $747 million, respectively. Its president and CEO, Vern Yu, stated, “2025 was a yr of robust execution and disciplined supply for AltaGas.”
Yu famous the robust efficiency throughout the Utilities and Midstream companies, leading to a 5% enhance in normalized earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) to $1.9 billion in contrast with 2024. The diversified platform operates long-life power infrastructure belongings that guarantee resilient, rising shareholder worth.
Dividend sustainability and development
In December 2025, the $15 billion power infrastructure firm introduced a 6% dividend enhance, the sixth consecutive enhance in as a few years. Its compound annual development fee (CAGR) steerage on is 5% to 7% by means of 2030. Notably, the payout ratio of fifty% to 60% of normalized earnings implies dividend sustainability. The natural money move helps the dividend steerage.
Furthermore, administration goals to ship resilient, rising normalized EBITDA and earnings per share (EPS) whereas sustaining monetary leverage. This technique helps regular dividend development and leaves ample room for capital appreciation for long-term traders.
Export benefit
AltaGas is establishing the Ridley Island Vitality Export Facility (REEF), which is predicted to be operational by year-end 2026. In part one, the large-scale liquefied petroleum gasoline (LPG) and bulk liquids export terminal will export propane and butane to world markets.
REEF and its West Coast delivery benefit will assist AltaGas set up a dominant place in Asian markets. The amount of propane and butane exports to Asia is projected to develop 40% to 50% between now and 2040. Section one of many multi-stage undertaking will generate an estimated $278 million for the federal and provincial governments. REEF will export bulk liquids, ethane and different merchandise after part two improvement.
Up to now, web earnings is rising yearly since 2023. The identical is true for dividend development. Extra importantly, the enterprise by no means slows. Traditionally, when one engine slows, the opposite accelerates. For 2026, AltaGas plans to fund the roughly $1.6 billion capital program with internally generated money flows and debt. It can allocate 69% and 27% of the overall to Utilities and Midstream. The remainder will go to different enterprise issues.
Subsequent-gen dividend elite
AltaGas may be part of the ranks of TSX dividend elites comparable to Enbridge, Toronto-Dominion Financial institution, and Fortis. The compelling causes to take a position are: steady earnings, long-term natural development, and rising dividends. ALA is a possible anchor inventory for positive.
