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This ingredient gets a bad rep because it is irritating and drying due to its astringent property. Astringents draw out natural oils in tissue to constrict pores and dry out your skin.

However, alcohol denat. is not all that bad.

Due to its low molecular weight, alcohol denat. tends to evaporate quickly. One study on pig skin found half of applied alcohol evaporated in 10 seconds and less than 3% stayed on skin.

This also helps other ingredients become better absorbed upon application.

Studies are conflicted about whether this ingredient causes skin dehydration. One study from 2005 found adding emollients to propanol-based sanitizer decreased skin dryness and irritation. Another study found irritation only occurs if your skin is already damaged.

Small amounts of alcohol are generally tolerated by oily skin or people who live in humid environments.

The rule of thumb is this ingredient will probably not affect your skin much if it is near the end of an ingredients list.

One thing to note:
People with ALDH2 (aldehyde dehydrogenase 2) deficiency may experience skin irritation from continued alcohol use. About 8% of the world's population have this deficiency.

The Cosmetic Ingredient Review Expert Panel has determined denatured alcohols to be safe for use in concentrations between 0.05% and 12% (depending on which denaturant is used).

Also...

This ingredient has antimicrobial and solvent properties.

The antimicrobial property helps preserve products and increase their shelf life. As a solvent, it helps dissolve other ingredients.

Look for formulas that contain glycerin, hyaluronic acid, or panthenol if you want to offset any drying effect.

This ingredient will trip away your skin's natural oils/lipids that help it lock in moisture. This can worsen dryness, trigger eczema flare-ups, and aggravate rosacea.

Be sure to patch test any product with this ingredient if you have dry or sensitive skin, eczema, or rosacea.

According to manufacturers, this ingredient is an emollient and humectant. This means it helps hydrate the skin.

In medicine, this ingredient is used to help relieve heartburn and help heal ulcers.

There is currently no credible scientific evidence linking aluminum hydroxide in cosmetics to increased cancer risk.

Major health organizations allow the use of aluminum hydroxide in personal care products and have not flagged it as a carcinogenic risk at typical usage levels.

The safety profile of this ingredient is reassuring; the US CIR Expert Panel concluded D5 is safe as used in cosmetics and Health Canada concluded that D5 is not harmful to human health or the environment as currently used in cosmetics

There's a study that people mention about D5 in a rat study showing tumors. This study is related to long-term inhalation of high D5 levels.

Regulatory bodies have judged this study to be not applicable in topical skincare since skin absorption of D5 is very low and we're not really inhaling huge amounts of D5.

The only restriction for this ingredient is environmental. The European Chemicals Agency (ECHA) restricted D5 in wash-off cosmetics at or above 0.1% due to their persistence in water.