Algonquin: Too Early To Get In


  • Algonquin’s stock is currently under pressure and offers a favorable stock valuation compared to its historical valuation and compared to others in the industry.
  • Algonquin’s financial strength has weakened and therefore the company will sell assets, reduce its dividend and cancel its dividend reinvestment plan.
  • Since historical financial performance has not been pretty, I am somewhat skeptical about the future.
  • I think it is too early to get in, a good time to get in is when the debt ratios are more favorable after the sale of the assets.

Energy lecture screen

Laurence Dutton


When I see rising dividends per share, a high dividend yield and a low stock price, I always try to see if this is a good buying opportunity. Algonquin Power & Utilities (NYSE:AQN) offers a

Data by YCharts

Dividend Growth History - AQN' ticker page on Seeking Alpha

Dividend Growth History (AQN’ ticker page on Seeking Alpha)

Algonquin' Cash flow highlights - SEC and author's own calculations

Algonquin’ Cash flow highlights (SEC and author’s own calculations)

Data by YCharts

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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