
TSE:AQN
This summary was created by AI, based on 26 opinions in the last 12 months.
Algonquin Power & Utilities Corp (AQN) has undergone a significant transformation in recent years, primarily after divesting from its renewables segment to focus on regulated utilities. The sentiment among analysts is cautiously optimistic, signaling an improvement in the company's trajectory under new management, though many acknowledge ongoing struggles with a historically burdened balance sheet and mixed past performances. The stock is currently viewed as a potential turnaround story, with a rangebound trading characteristic and a decent dividend yield of about 4.3% to 5%. While some analysts recommend waiting for clearer signals of recovery, others see a strong technical foundation developing, suggesting that AQN could begin to appreciate in value as it stabilizes and moves towards a more predictable utility profile. General market conditions and broader trends toward renewable energy also present a mixed outlook, hinting at a gradual recovery phase ahead.
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.
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)
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.