Thursday, September 15, 2016

Recent Buy - Algonquin Power & Utilities Corp (AQN.TO)

On Tuesday, September 13, I Bought 300 shares of  Algonquin Power & Utilities Corp. at CA$ 11.78 per share plus commission.

Algonquin Power & Utilities Corp., through its subsidiaries, engages in the generation, distribution, and transmission utility assets in North America. The company generates and sells electrical energy through a portfolio of non-regulated renewable and clean energy power generation facilities. It owns or has interests in hydroelectric facilities with a combined generating capacity of approximately 120 megawatts (MW); wind powered generating facilities with a combined generating capacity of 700 MW; and solar energy facilities with a generating capacity of 30 MW, as well as interests in thermal energy facilities with an installed generating capacity of approximately 335 MW. The company also owns and operates electricity, natural gas, water distribution, and wastewater collection utility systems to approximately 489,000 connections. It serves approximately 93,000 electric connections; 292,000 natural gas connections; and 104,000 regulated water distribution and wastewater collection connections in the states of California, New Hampshire, Georgia, Illinois, Iowa, Massachusetts, Missouri, Arizona, Arkansas, and Texas. The company was founded in 1996 and is headquartered in Oakville, Canada.

AQN has a 5 year streak of dividend increases. Dividend growth rates for 1, 3 and 5 years are 9.1, 8.4 and 9.4. (Canadian Dividend All-Star List) After the last dividend increase declaration, Algonquin Power & Utilities Corp. now pays dividends of $ 0.1059 per share normally in January, April, June and October. The quarterly dividends payable on common shares are declared in U.S. dollars.

Details of my purchase:

Some ratings for AQN: 

    Yahoo:  Mean Recommendation 1.9, 1y Target Est CA$ 10.72
    Reuters: Mean Rating 1.89

At today's exchange rate, this purchase 300 shares of AQN will increase € 83.91 ($ 94.67) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 9,200.00. With purchase price CA$ 11.78 plus commission (CA$ 6.00) my starting yield on cost is 4.72%.

Click here to see my portfolio.

Full Disclosure: Long AQN 

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  1. The only thing that would scare me is the payout ratio of 137%. EPS of 0.28 Anu Div 0.39

    1. Hi DC, yeah you are right, now the payout ratio is pretty high, but I suppose that in the future EPS will grow comfortably.


  2. Interesting buy Hawk. Can't find this in many portfolios:) I think payout ratio is moving in better direction as we speak. Adjusted Net Earnings $0.31 per common share for the first six months of 2016. That would make about 68% payout.

  3. Interesting buy...I agree with Dividend Lord, you don't see Algonquin mentioned alot in investors' portfolios. I started looking at Canadian companies as well...currently the one I like is Toromont Industries...was going to start looking at Emera and Capital Power. I also like the geographical diversification you have in your portfolio.