RE:RE:ALA vs AQNHey B2T
Thanks on the reply and nice comments. Generally AQN has done better than ALA across most time periods. Anyone that would have gotten a better return from ALA would have had to have very good timing.
The returns I reported exclude the dividends. AQN has also paid a very nice divy over the years. When we first bought it in Nov, 2011 at $5.55, the divy was $0.28/yr which was a 5.04% yield at the time. AQN has also regularly rasied it's divy including a 10% bump this year. That sure looks a lot better than the recent 56% ALA cut.
Anyway, as you may have noticed form my last post to Tec, I've finally reached my tolerance limit on ALA and am trimming from 4200 shares down to 1500.
It will always make me sad that ALA used to be one of my favs when it was focused on good old Canadian assets. People can say "let it go" but I never will and will always be scarred and disappointed. :-)
Take her easy
Sarge
born2trade wrote: I really like that you share the facts and share useful information. I certainly have benefited from your posts . Couple of points worth considering :
- You are absolutely correct based on your experience that AQN returned 3X over last decade compared to ALA that yielded -ve return
- Did you consider the dividend paid while calculating return ? ALA before cutting the dividend was paying over 8%
- Others on this board may have different experience and they may also be correct in saying ALA return is higher than AQN . For example - ALA dropped under $9 per share during March lows and those who picked up shares at that time locked in over 10% yield and also price almost doubled since then
- Historical returns may not be replicated in future. Market is forward looking. AQN has been excellent holding for last decade but there is no assurance that it would return 3x over next decade. ALA on other hand had its own problems and it may turn out to be better play in future.
One thing we can probably agree that ALA is more volatite (higher risk/reward) stock than AQN and just look at Beta for these stocks (ALA 1.66 and AQN 0.34). ALA suits more to high risk takers.
SargeX wrote: I find it quite interesting that there's a number of pumpers that argue that ALA is a better holding than AQN. I really think that's quite a JOKE!!.