The Bank of Canada's recent interest rate cut to 3.25% has opened up new investment opportunities, particularly in dividend stocks with capital gains potential. As GIC rates hover around 3%, some experts suggest exploring dividend stocks with strong growth potential. \One such stock is ALA-T AltaGas, an energy infrastructure and utility company. It boasts a 4.39% dividend growth rate over the past five years and is expected to continue this trend.
AltaGas's midstream division, focused on natural gas processing and transportation, is poised for growth with the expansion of the Ridley Island Propane Export Terminal, facilitating increased exports to Asia. Its U.S. utilities business may also benefit from rising energy demand in data centers. Trading at a lower valuation compared to Canadian utilities like Fortis Inc., AltaGas offers a compelling yield in the 3.8% range. However, risks include unexpected interest rate hikes and new energy discoveries closer to AltaGas's Asian customer base. \Another attractive option is Flagship Communities, a U.S.-based operator of manufactured housing communities. This REIT, listed in Canada in 2020, has maintained a 5% dividend growth rate over the past three years and is expanding through acquisitions in the U.S. Midwest and Southeast. Flagship Communities is currently trading at a discount to its estimated net asset value and offers a yield of around 4.2%. Its 54% payout ratio suggests further distribution increases are possible. The company's strong performance and growth prospects make it an intriguing investment opportunity
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