Algonquin Power & Utilities Corp (AQN.TO)

A high quality utility name. The share price is declining. There is actually nothing negative with the business itself. It is just the market re-pricing the multiple due to rising interest rates. There is more volatility and downside coming.

One of the names in the interest sensitive space that looks the most interesting. Reporting in US dollars now. Looks like there is room for dividend growth here. Payout ratio in the mid-forties. (Analysts’ price target is $15.03)

They announced today very good earnings and boosted dividends by 10%. It will not get overly hurt by rising interest rates. He also likes the “green” element of their business. The dividend is sustainable. Yield 5.1%. (Analysts’ price target is $15.10 )

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.