Topic: How To Invest

Dividend Advisor Hotline – Friday, October 7, 2022

Article Excerpt

ALGONQUIN POWER & UTILITIES CORP., $14.74, Toronto symbol AQN, is a top pick for 2022. The company has two main businesses: the Regulated Services Group provides regulated electricity, gas, water distribution and wastewater collection services in Canada, the U.S., Chile, and Bermuda; and the Renewable Power Group produces electricity from about 40 clean-energy plants in North America. Algonquin last raised your quarterly dividend with the July 2022 payment. Investors now receive $0.1808 U.S. a share, up 6.0% from $0.1706 U.S. The new annual rate of $0.7232 U.S. yields a high 6.7%. The company tends to fuel its growth with acquisitions. It cuts the risk of that strategy by focusing on rate-regulated utilities. Its latest purchase is Kentucky Power Co., which generates and distributes electricity to 228,000 customers in Kentucky. During the process to win regulatory approval, Algonquin and the seller have re-negotiated the selling price to adjust for certain costs. As a result, the company will now pay $2.65 billion (including Kentucky Power’s debt), down…