Algonquin Power & Utilities Corp (AQN.TO)

Pays an attractive 5.1% yield. Interest rates are still low. The business has held up well vs. its peers where other utilities have sold off (i.e. Emera). AQN is spending money on growing its capacity and doing acquisitions. It's an integrated name from generation to distribution. They raised $2.5 billion last year that will fuel growth. They took 25% ownership in Atlantica Yield to get into the clean energy space. AQN is diversified. It's neither cheap or pricey, trading at 15x. It's part of an overall balanced portfolio.

He would love to find an entry point. Rising interest rates could be an issue, but feels the bigger issue is that wind and solar are in the crosshairs of government. There is fear the governments could end long term contracts, which could create major headwinds.

As with many other small startup utilities in Canada, they have done quite well with alternative energy. He thinks that current governments are likely to reduce or stop their subsidies, which will affect the growth of these companies. Algonquin’s dividend is dividend is 4.9%. It seems reasonably priced. They have some backlog, so there is no reason to fear this stock. He would prefer a slightly higher yield for his dividend fund.

Great company. Owns NPI instead. AQN has moved more into the U.S. (than NPI) and wind. energy. Offers good growth with fine dividend growth.

He owns this for the 5% dividend. AQN isn't pure-play renewables (they own a bit of nat gas). He's happy if this moves sideways and stays steady. AQN has a large portfolio and you can own this for the long term.

((A Top Pick May 17/18, Up 10%) Turnaround story. Room to grow cash flow and dividends.

It has been part of the overall selloff in the interest sensitive names. It is no surprise. Today if you look at it, it has a well balanced business with half revenues coming from generation and the other half from distribution where they sell right to the retail client. They had a nice lift in Q2 in the Atlantica yield. Look at the capital spend program in theses utilities. AQN-T have earmarked several $billion and he likes that. With the recent selloff it is at 15 times PE which is the lowest in recent times so he is adding it to portfolios.

He likes this and has had it as a previous Top Pick. If interest rates go up, he thinks they will be able to maintain dividend growth to match any rise in rates. He would be a buyer here.

Fortis or Emera or Algonquin for dividend income, with increases? Fortis. Fortis is a good price in these ranges, history of increasing dividend, good diversified portfolio. Market has overreacted to rising interest rates, and Fortis has been caught in this. Fortis has had a better growth rate than the others, and an excellent reputation.

(A Top Pick August 11, 2017. Up 1%). This is still a core holding. They have made some smart acquisitions in the last year. At this level, he thinks it is attractive. They are increasing their dividend, which makes the rise in interest rates less of a challenge for the price of this stock than for the price of other interest-sensitive stocks that are not growing their dividends. He expects more of the baby boomers to buy stocks like this, to get stable income with a little bit of growth.

Looks good. Technically, trading off of support. Peak support is $12.70. Lots of volume around this price. If drops below $12.30, exit, then no support until $11.50. Potential to go up to $14.50 by end of year. Set an exit point and stick to it. Have to be really disciplined with stocks like this.

(A Top Pick May 03'17, Down 4%) It is interest sensitive but dropped less than others. He thinks a lot of it has played itself out and sees this as a good entry point.