TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.06
-0.03 (0.37%)
as of Aug 6, 2026, 8:00:01 pm Market Open.
1393 watching
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Investor Insights
star iconAug 6, 2026, 12:00 am

This summary was created by AI, based on 28 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) has experienced significant challenges over the past few years, particularly stemming from high debt levels associated with its aggressive acquisitions in the renewable sector, which led to a dividend cut and a loss of investor confidence. Despite these struggles, recent reviews indicate that the company is undergoing a transformation, refocusing on its core regulated utility business after divesting most of its renewable assets. Analysts have observed signs of improvement, suggesting that AQN is gradually regaining footing under new management. However, the stock remains in the 'penalty box' and is viewed as a 'show-me' stock, awaiting proof of its capability to generate consistent profits again. While there is optimism about future earnings potential and attractive yields, many experts suggest a cautious approach due to the lingering restructuring phase.

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Consensus
Cautious
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Valuation
Undervalued
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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.
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.
HOLD
Recent slide in share price tough, but will continue to own shares. Management indicating that will need to re-evaluate long term growth targets. Higher interests creating big problems for debt financing (using floating rate debt). Recent purchase of Kentucky Power will have to be purchased with line of credit instead of equity (not ideal). Pushing back investor day(December) which market does not like. Dividend is not sustainable at current levels.
COMMENT
Aggressive growth by acquisition tripped it up. Recent acquisitions have not delivered on expectations.
PAST TOP PICK
(A Top Pick Oct 14/21, Down 29%) Darling company in the past years. Recent share price decline creating opportunity for investors. 100 year assets that are not going away. Distribution business still attractive (buying and selling power). Believes long term investors will be rewarded. Continues to own shares.
HOLD
Hoping company performs better going forward. Current share price is presenting buying opportunity, but time will tell.
WEAK BUY
Kentucky deal has stumbled, an opportunity to invest at a relatively good valuation. Fairly nice yield. If he owned, wouldn't sell, and you could dollar-cost-average down. Dividend relatively secure. See his Top Picks. Yield is 6.6%.
DON'T BUY
Didn't like constant share issuance and rising debt. Very acquisitive. Low growth businesses. Didn't like the renewables side. For dividends, he'd rather own FTS, TRP or ENB.
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