Alterra Power MGMXD

AXY's Shareholders' New Dividend Yield

[BoldForbes]

Perhaps this merger may not be too back for existing AXY shareholders.  Innergex is a larger company in market capitalization and production.  Additionally, if Innergex can continue their dividend of $0.66 CAD, currently a 4.49% yield on the $14.25 CAD stock price, then AXY shareholders could have a significant increase in yield with what appears to be a stable stock.

The numbers below are in CAD $...and assume that INE will continue paying the dividend.

AXY Dividend	0.05	0.66
AXY Stock Price Pre-Acquisition	5.08	14.25
AXY Yield	0.984%	4.632%
AXY Stock	100
Conversion to INE	0.5563	all stock (otherwise you can receive $2.06 in cash on 0.4172 in INE stock)
New INE Stock	55.63
INE Dividend	$       0.66
New Annual Dividend	$    36.72	Old AXY Annual Dividend $5.00
New Dividend Yield	7.23%	Based On AXY Stock Price Pre-Acquisition

But it gets better if you look at your cost basis for the yield instead of the market value.  If you have a stock cost basis of $4.00 or below look at the dividend yield.

AXY Dividend	0.05	0.66
AXY Cost Basis	4.00	14.25
AXY Yield	1.250%	4.632%
AXY Stock	100
Conversion to INE	0.5563	all stock (otherwise you can receive $2.06 in cash on 0.4172 in INE stock)
New INE Stock	55.63
INE Dividend	$       0.66
New Annual Dividend	$    36.72	Old AXY Annual Dividend $5.00
New Dividend Yield	9.18%	Based On AXY Stock Price Pre-Acquisition

Please review my calculations.  I still need to research INE’s management, financials, etc.  I just haven’t had the time…

Bold Forbes