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When it comes to utilities, investors expect a rich dividend.

Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) doesn’t disappoint.

Its annual payout of US$0.466 per share is good for a 5% yield for Canadian investors, as the U.S. dollar has been strengthening against the Canadian dollar. The high yield is secured by the company’s stable cash flow generation and a conservative payout ratio.

What fuels Algonquin’s cash flows is its diversified portfolio of rate-regulated distribution utility and power-generation assets.  Read More…

7 Comments

  1. It’s a damn shame that the good days when every bank had 4% interest easily. Now we are stuck being happy with 5% yields as amazing.

  2. Surely, there are other (and better) performers than AQN. I can name a few if anyone is interested.

  3. Ahh yes the always reliable utility sector.

  4. I’m a noob and i still don’t understand why a company would want to give out dividends by choice. As a company i’d rather keep it internal to keep growing indefinitely. Or better yet, keep it in case of bad times — and they will come eventually in the marketplace.

  5. Use to own Algonquin. Got cold feet when they mixed up upper management.

  6. An interesting pick. Will do some dilligent research. Thank you.

  7. I wish i knew about them last year. My portfolio is pretty much locked in for the year.

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