TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.55
+0.06 (0.71%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
1396 watching
0
Investor Insights
star iconJun 26, 2026, 12:00 am

This summary was created by AI, based on 27 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) is undergoing a significant transformation, having sold off much of its renewable energy business to focus on being a more traditional regulated utility. Expert reviews indicate a general sentiment of cautious optimism, citing improved management and a commitment to stabilizing the balance sheet. Many analysts note AQN has faced challenges over the past few years, including dividend cuts and overleveraging, but recent strategic shifts appear to be reversing this trend. The stock has shown signs of technical improvement, with a breaking out of a downtrend and nearing its resistance level of $9, which analysts believe it might breach. The yield remains attractive for those willing to hold, although there are suggestions that better investment opportunities may exist in other utility companies.

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Consensus
Cautious
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Valuation
Undervalued
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COMMENT
Revenue didn't grow in the last quarter. Issue with Canadian utilities is that they acquired companies and have debt. If they can grow their revenue base, can keep paying back debt. Has been making acquisitions, like in wind power, but must see how the coal to natural gas conversion plays out. It could go sideways.
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.
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