Algonquin Power & Utilities Corp (AQN.TO)

Held this until recently, but sold earlier this month because he had been overweight in the utility space and wanted to take some profit. He owns Emera (EMA-T) which owns 25% of Algonquin. They recently did a large acquisition, and already had quite a bit of debt, so that added to their debt load. Because of this, their ability to raise their dividend is going to be somewhat impaired in the coming months and years. Thinks the dividend is safe.

The stock chart looks great. The yield is very attractive and the chart looks bullish.

A great company. Tends to have a nice dividend and the stock price moves relatively steady. Have a lot of nice projects now and in the works, which will continue to allow them to grow.

(A Top Pick May 25/15. Down 14.94%.) *Short* He covered his holdings as the stock rallied. As a utility stock, he would still argue that this is expensive.

This scores very well on his safety & value strategy. It doesn’t have an excessive amount of debt. However, analysts have been revising down their estimates recently, so he would avoid at this time.

Just made an acquisition that looks pretty accretive. He would have no trouble buying this name. They issued a note to fund their latest US transaction, that might get you further ahead in the amount of interest it pays. You are now getting the benefit of US growth, but also with a FX tailwind.

Bought this in the past because he likes the yield, and will most likely be adding it back in again. Good management which has executed well.

Has a great pipeline of growth opportunities, and is in the process of doing a transformational acquisition of Empire District Electric (EDE-N) which is about half renewable and half regulated. Algonquin dipped recently because they did $1 billion raise to pay for this acquisition. He likes the structure.

It is like one of his three Top Picks. They have long term power purchase agreements, a 4.2% secure dividend. Most recent earnings have been increased 16 percent this year, 20% next year. People have confidence in this and other renewable energy companies.

(Market Call Minute.) Doesn’t know this one very well.

This fits into the thesis of being pretty defensive. About 90% of their earnings come from the US. Dividend yield of 4.91% is well covered and is capable of growing. He models a 15% free cash flow growth over the next few years. This is one where you get paid and it is not going to hurt you. In this kind of market, pick your time to step in.

(Trying to be conservative on his Top Picks this time.) This has a growth profile where they really know what they are going to be doing between now and 2020. They have the projects lined up which will allow them to ramp them up, increase their dividends and have cash flow for the next project. Dividend yield of 4.87%.

Quality, stability and cash flow is important. 4.88% yield. They have been busy on the acquisition front in the distribution part of the business.

It is a powerful chart. There is no reason to sell this. This stock has much farther to go.

18% earnings per share growth. Nice dividend growth and a 60% payout ratio.