Compounding Long-term Dividends at 5-7% CAGR
Compounding Long-term Dividends at 5-7% CAGR
DIVIDEND
PHILOSOPHY
■
Plan to return capital through sustainable dividends
increases
Industry leading normalized EPS and FFO growth
provides the opportunity to grow DPS at the same rate
1
2
50-60% Payout Ratio Target Calibrated at a
Logical Portion of Normalized EPS
Midstream Peers
Utility Peers
$1.19/Share
2024 Dividend
Represents a 6% increase
or a $0.07/share increase
versus 2023.
5-7% Approximate Annual Dividend CAGR
Range Expected Over the Next Five Years
Long-term Implied Dividends Per Share Growth Rate
Annual dividend
growth rate
adjustable up to
AltaGas' medium-
term normalized
EPS growth rate
140%
120%
$1.60
Announced
5%
6% 7%
100%
$1.40
80%
60%
$1.20
40%
$1.00
20%
I
Peer 1
Peer 2 Peer 3 Peer 4 Peer
Average
Peer 5 Peer 6
Peer 7 Peer 8
ALA I
$0.80
2020 2021 2022 2023E 2024E
2025E 2026E 2027E
2028E
Notes: 1) Non-GAAP financial measure, see discussion in the advisories. Peer payout ratios based on 2024 estimates from Factset; *See "Forward-looking information"
AltaGas
Dividend Recommendation Aligns with Medium Term Normalized EPS Growth
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