AQN - Algonquin: Searching For Value After The Collapse 7.1% Dividend Yield
2024-01-26 16:34:55 ET
Summary
- Algonquin is looking to divest its renewable energy group to address debt and keep its investment-grade credit rating.
- The utility is currently paying out a 7.1% dividend yield that's 224% covered by adjusted FFO realized during its most recent quarter.
- A sale of its 42% stake in Atlantica Sustainable Infrastructure would have to be completed against poor stock market conditions for renewables.
Algonquin Power & Utilities Corp. ( AQN ) has lost roughly 17% of its value over the last year with total returns still poor at 12% following a $0.07 per share dividend reduction. The utility company last paid a quarterly cash dividend of $0.1085 per share , left unchanged sequentially and $0.434 per share annualized for a 7.12% dividend yield. I've owned a small position in the equity units of ( AQNU ) for a while now, recommending them over the commons when I last covered the ticker. These have performed better on a total return basis with a lower loss of 6.1%, however, they come with a mandatory conversion to the common shares on June 15, 2024....
Algonquin: Searching For Value After The Collapse, 7.1% Dividend Yield