AQN buys Kentucky Power

Article Excerpt

ALGONQUIN POWER & UTILITIES $17.84 is a #1 Buy for 2021. The utility (Toronto symbol AQN; Shares o/s: 619.3 million; Market cap: $11.1 billion; TSINetwork Rating: Extra Risk; Divd. yield: 4.7%; www.algonquinpower.com) is now buying Kentucky Power for $3.5 billion. Kentucky Power is a state rate-regulated electricity generation, distribution and transmission utility operating within the Commonwealth of Kentucky It serves 228,000 customers. Growth by aacquisition adds risk, especailly with purchases as big as Kentucy Power. However, the acquisition looks like a good fit for Algonquin. It will add over $2 billion of regulated rate base assets in a favourable regulatory jurisdiction. That will contribute to Algonquin’s cash flow and enhance the sustainability of its dividend, which yields a high 4.7% Algonquin Power & Utilities is a #1 Buy for 2021. 2021…