Algonquin Power & Utilities Corp (AQN.TO)

A yield proxy. Its growth is not what it used to be. If you are going to invest in a yield proxy in a rising interest rate environment you need one of this two things: really good valuations or really good growth. He thinks these guys have that good growth with a joint venture they just got into.

He does not own any of the power trusts. This one has been pretty good and has gone out and acquired assets to grow. It has headwinds outlined at the start of the show. It is hard to offset the leverage with growth that they have to have in order to meet the dividend.

Added this name a few months ago. The dividend is safe. They have a project backlog that will support its cash-flow growth. AQN recently entered a joint venture with a Spanish utility. AQN is growing its renewable presence, which she likes. Good growth profile here.

This has been a really good name for him but it has done the heavy lifting now. The payout ratio is creeping up a bit. He would sell calls on this. It probably will not be doing any heavy lifting going forward.

A high dividend yield stock with a healthy balance sheet. A double-top has formed, so he would be patient. A drop below $12.20 would be dangerous. The credit market is under stress and since this company needs capital, they will have to pay more to borrow money as interest rates rise. You should wait a couple of weeks to see how things go.

He sees a model price of $15.16. A pullback to $11.82 would make it enticing. With the yield, there are better investments out there. Yield 3.62%.

Utility company. 75% of their profits come through regulated operations primarily in the US. Very stable cash flows. Yield is 4.6%. Regulated utilities have rate cases every so many years, so over time they are allowed to adjust rates if interest rates go up. They are expanding internationally as well. (Analysts’ price target is $15.50)

Down from $1.50 from $14.50 peak. Good company with good growth, including a fine dividend. Fine assets. In the final stages of a U.S. acqusition. Well-diversified.

(A Top Pick March 24/17 - Up 0.07%.) Higher growth compared to its peers. A better story until bond yields started to move up. This is a name that could give you singles from here but is not going to do the heavy lifting in your portfolio.

Utilities are out of favor, which presents a buying opportunity. She sold Inter Pipeline and bought this in preference. This is 75% regulated utility in the US, with 25% renewable power generation. It can grow the dividend by 10% every year until 2021 (it is 4.6% now). Announced a joint venture with a Spanish company, which gives it another path for growth. (Analysts' price target is $15.72).

It's been testing $12.50 for a long time. He needs to see it hold that. He's leery of AQN. If he owned it, he'd sell some of it. It's been stuck for a while.

This is seeing growth in its generation business and its distribution business.

(A Top Pick March 13/17. Up 9%.) An absolute gem, but is cautious with utilities including AQN at least for now. You can hold it for five years and forget about it. If you're a trader, now's a good time to get out, because of overall situation with utilities, rising interest rates and servicing their debt.

The sector is under some pressure. This has had a short-term hit moving down from $14.40 to $13.30. This company does have a pretty good dividend growth, which makes it more attractive than many in the sector. However, it is not going to lead the market. If you are looking for total return, growth and capital plus some dividend growth, you might want to look elsewhere. (See Top Picks.)

He has not seen anything specific recently that would explain the drop, except the effect of interest rates. In the past it has always been a buying opportunity.