Enjoy a 5.4% yield from Algonquin Power & Utilities

Enjoy a 5.4% yield from Algonquin Power & Utilities

Algonquin Power & Utilities’ decision to sell its non-regulated renewable assets and focus entirely on its regulated utilities business is a game-changer.

This move significantly reduces risk and enhances earnings predictability because regulated utilities typically offer more stable cash flows and returns. While the company… Read More

AQN moves to cut your risk

ALGONQUIN POWER & UTILITIES, $7.19, is a buy. The utility (Toronto symbol AQN; Shares o/s: 689.7 million; Market cap: $5.5 billion; TSINetwork Rating: Extra Risk; Yield: 5.3%; www.algonquinpower.com) has agreed to sell most of its non-regulated renewable power assets for $2.28 billion. It could receive an additional $220 million… Read More

Trimming their payouts have cut your risk

These green energy producers are cutting your dividends as they focus on their more-profitable operations. Those moves, however, should stabilize their long-term cash flows and make their current payments more sustainable.
ALGONQUIN POWER & UTILITIES CORP. $7.13 is a buy for long-term gains. The company (Toronto symbol AQN;… Read More

Activists will aid in their turnaround

Starbucks and Algonquin Power are working with activist investors as they embark on turnaround strategies. However, Autodesk (see box) is resisting activist pressure. Even so, we like the outlook for all three picks.
STARBUCKS CORP. $93 is a buy for aggressive investors. The company (Nasdaq symbol SBUX; Consumer… Read More

TNL expands in Asia

TRAVEL + LEISURE CO. $46 is a buy. The company (New York symbol TNL; Cyclical-Growth Payer Portfolio, Consumer sector; Shares outstanding: 71.0 million; Market cap: $3.3 billion; Dividend yield: 4.3%; Dividend Sustainability Rating: Average; www.travelandleisureco.com) is now the world’s largest vacation-ownership and exchange company with more than 245 timeshare… Read More

Royal Bank has a bright future

Royal Bank now plans to complete its acquisition of HSBC’s Canadian operations in March 2024. That $13.5-billion purchase enhances Royal’s domestic operations. Moreover, costs savings from the elimination of overlapping operations should also spur earnings.
Banking regulators have toughened lending standards and mortgage stress-test levels in… Read More