- If investors look at AQN's earnings per share, which is usually a good profit metric for utilities, AQN looks pricey and in danger of a dividend cut.
- But AQN is not your average utility. It has substantial non-regulated business operations that make adjusted funds from operations the better profit metric.
- When using AFFO, AQN looks relatively cheap, and the dividend is well-covered.
- Growth this year has been stellar, with several acquisitions completed and renewable power generation projects coming online.
- The market doesn't seem to like AQN's recent financing activity, but I don't mind it.
For further details see:
Algonquin Power & Utilities: A Misunderstood Dividend Growth Powerhouse