Algonquin Power & Utilities Corp (AQN.TO)…

Algonquin Power & Utilities Corp (AQN.TO)

7.17

+0.02 (0.28%)

as of Oct 1, 2026, 8:00:00 pm Market Open.

1390 watching

DON'T BUY

Dividend safe? Difficult numbers, problems with some assets. Technically, dividend is safe from a cashflow perspective. It would make sense to cut the dividend now, since the stock is down so much, because the stock won't fall much more even if they cut it. Big issue is whether debt will be downgraded, as it makes interest payments much higher and they may not be able to buy assets. Yield is 11%.

WEAK BUY

1-3 year outlook He too was surprised with their earnings call. Restoring confidence will take time. They must restore debt levels, but the jump in interest rates surprised all in the market. Maybe AQN needs to sell some projects. Expect no growth for 2 years. Maybe they should stop issuing shares and they might stop their DRIP. He doesn't think they will cut their dividend. Probably AQN is pounded further by tax-loss selling. Suggests you sell puts at a lower strike in a taxable account.

DON'T BUY

There is a possibility it could be taken out. He has sold and would not buy it back now.

HOLD

Disappointed shareholder, but still keeping shares. Poor 3rd quarter and has recently decreased guidance. Kentucky Power merger will not go through (not a good sign). Hoping that balance sheet remains at investment grade.

HOLD

Under acute pressure, especially since Q3 reporting. Strain from inflationary cost pressures, delays in reaping tax credits. Long established history in the renewable space, which will be secularly advantaged. Below book value at 0.9x. Market skeptical of the 10.3% dividend, risk of a cut is on the table but not on the knife's edge. Might already be priced in. Insider buying. Still BBB credit. Don't step in aggressively now amid tax-loss selling. Longer term, can own comfortably.

PAST TOP PICK

(A Top Pick Dec 17/21, Down 42%) Tough. He actually bought more. Short-term problems of missing on Q3 and pulling guidance for next year. Bigger overhang is the acquisition closing next year, funded by variable rate debt. They do have options. Better management communication could have helped. Dividend cut is about 50/50, but probably not eliminated. Astounding valuation at 10x earnings, 6x cashflow. Watch next 3-18 months to see how issues are addressed.

COMMENT

Recent headwinds include a high exposure to floating interest rates along with a lot of debt coming due this year and in 2023. The acquisition of Kentucky power will add more debt. The dividend is 10% but there is risk that they can't sustain it.

DON'T BUY

Has sold shares in the company. Does not believe in prospects for company. Unsure whether dividend is sustainable. Better options available for investors.

Wealthica Track your Stocks in your Watch List

BUY

Misses on one quarter, and it gets punished. Way, way oversold on not great news, but hardly disastrous. People panicked unduly. Premier renewables company with solar, wind, hydro. Not going away. Thinks dividend is safe, need another couple of bad quarters in a row before it's in danger. Bargain basement price. Usually get rewarded when there's a fast dip like this, once it gets out of the penalty box.

HOLD

Will cut their dividend A dividend trap happens when a stock plunges and the yield soars. With AQN, investors expect a dividend cut to reflect a shift in the fundamentals, which is why shares have fallen lately. He owned this earlier this year, and let it go because fundamentals deteriorated. Don't toss this out.

SELL

They owned it and sold about a year ago since they didn't like the asset that AQN bought. They have cut their dividend and have a lot of debt. A good tax loss candidate.

BUY

Believes shares are turning around. Looking for higher prices.

Unspecified

It has a 22% floating rate debt. He sold it in the active portfolios. The CEO recently bought a big chunk which is encouraging. He didn't like the third quarter results and there are more interesting opportunities in this area.

WATCH

Doing all the right things, and then got hit last quarter. Ups and downs of the renewable space, higher costs to produce, and higher borrowing costs. Can't say dividend is 100% safe. High risk name now. Depends on your time horizon, will take time to bounce back. Insiders are buying shares.

DON'T BUY

Bought shares twice as high as current prices Sell half, take profits. An early casualty of rising interest rates with less free cash. The yield has jumped to 9.7%, so keep an eye on that, because if the dividend is cut, the share price will fall even more--though the price could rise too.

Showing 136 to 150 of 588 entries

Most Recent Experts

Dennis Mitchell, CFA

Sentry Select Capital Corp

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Jim Cramer - Mad Money

CNBC

Andrew Moffs

Vision Capital

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Algonquin Power & Utilities Corp (AQN.TO)