TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.27
+0.17 (2.10%)
as of Jun 4, 2026, 8:00:00 pm Market Open.
1398 watching
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Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 29 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) has undergone significant transformation in recent years, primarily shifting its focus from renewable energy to regulated utilities. While the company has faced challenges, including overleveraging and management changes, recent updates suggest a stabilizing outlook. Experts indicate that there is potential for profitability growth, especially with new management steering the company towards a more predictable business model. Analysts recognize the importance of this strategic shift, as AQN is now seen as cheaper compared to peers in the utility sector, making it an interesting play for future growth and income. However, caution remains as some analysts recommend monitoring the company's progress before committing, given its recent history of dividend cuts and restructuring efforts.

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Consensus
Positive
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Valuation
Undervalued
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HOLD

During low interest rates as a safe haven? This time of year, be defensive. Momentum isn't great. Utilities are good. Good year over year revenue growth, which is unusual for a utility. AQN is reaching end of seasonality from mid-May to late-August. It's holding 20/50/200-moving averages. Hold until end of seasonality. Emera and Fortis' seasonality starts in July, so maybe rotate to these.

PAST TOP PICK
(A Top Pick Jun 26/18, Up 34%) A growth utility. Their U.S. acquisitions are turning out really well. He still likes it. They have a plan of growth and dividend increases nearly 10% for the next five years. Sure, it'll pull back a little in a recession, but the dividend will remain solid.
COMMENT
Dividend on the higher end at 4.65% right now. Impressive growth when it comes to revenue. Not a pure play, they do have some exposure to natural gas. Likes them but doesn't own them. A company that can give you a nice mix with an healthy dividend while still having some room to grow.
BUY
It is part utility and part infrastructure. It started in Canada and has grown quite rapidly. It meets his criteria.
DON'T BUY
It is a renewable energy company and utility that has had a remarkable run. It has been sought by dividend seekers for its dividend growth. The reason it has sold off is because they have become expensive and there is a rotation into more economically sensitive groups. If the Fed goes into a rate cutting cycle then it will benefit economically sensitive stocks. If you are buying it for the dividend then you will get it as well as dividend growth. He thinks the utility group will have some challenges, however.
TOP PICK

A recession-resilient business that's growing well. It's cheaper than its peers and pays a growing dividend. They have a number or pojects driving growth, which he forecasts at 11% and 10% annual dividend growth, at 16.3x earnings (cheaper than Fortis and Emera). Has a steady payout ratio, so the dividend is safe. The dividend will pay you well in a recession. This is a long-term play on clean energy. (Analysts’ price target is $17.08)

BUY ON WEAKNESS
He likes this stock a lot. It has been making higher highs and higher lows. He thinks another intermediate stock rallies about to begin so would be recommending this "risk-on" investment. He would be patient and buy on weakness near $16.
PARTIAL BUY
It's right on $16.68 model price. Good 4.38% yield. This is trading at fair market value, as its peers are overpriced. Buy on a pullback, though you can buy a little now.
PAST TOP PICK
(A Top Pick May 11/18, Up 24%) It has good US exposure. Don't expect acquisitions. This will be slow and steady, and the dividend will gradually rise. A good place to be when the interest rate is cut.
HOLD
Why did utilities fall today when the market also went down? This is a renewable, so it's a substitute for energy. Market today had a risk-off sentiment. Doesn't always hold that when rates go down, my interest sensitive stock must always go up. A long-term play, renewables are going to increase. Don't look at the day to day stuff, look at it for 10-20 years.
BUY
He likes this one. They do have cogen. For those that don't mind, it will do very well.
COMMENT

AQN vs NPI Both companies have similar yields -- around 4.9%. He owns both. AQN-T is more US focused. NPI-T is more international. The dividend with AQN-T is paid in US dollars.

HOLD
This interest rate sensitive utility was hurt hard with rising rates last year. As the Central Bank has reduced fears of further rate increases, these stocks have done well. AQN-T has a good balance between generation and distribution businesses. This makes it have more of a growth profile than other utilities in the space. It trades at 17 times earnings and has a 4.5% yield. He will continue to own it.
BUY
AQN vs. Fortis for the next 3 years Likes both, but gives the edge to AQN. AQN will continue to outperformer Fortis, but both are well-run and can deliver higher returns.
BUY
NPI vs. AQN NPI is fine, but she prefers AQN. Nothing wrong with NPI. NPI's recently pullback was due to the CEO dumping a lot of stock on the market, which was a buying opportunity/entry point. AQN has a regulated side in renewable side, pays a good dividend and can growth outside Canada.
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