Algonquin spreads globally

Article Excerpt

ALGONQUIN POWER & UTILITIES $16.03 (Toronto symbol AQN; Shares outstanding: 490.5 million; Market cap: $7.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%) operates natural gas, water distribution and wastewater collection services. The company will now buy Bermuda Electric Light Co., which is the main provider of electricity to the island’s 63,000 residents and businesses. If shareholders and regulators approve, Algonquin will pay $365 million when it completes the purchase later this year (all amounts except share price in U.S. dollars). To put that amount in context, it earned $93.8 million, or $0.19 a share, in the latest quarter. Using acquisitions to expand adds risk. However, the new operations should immediately increase Algonquin’s earnings. The company’s expertise with renewable power will also help Bermuda Electric Light cut its reliance on imported oil to generate power. Algonquin Power & Utilities is a buy. buy…