Algonquin Power & Utilities Corp T.AQN

RE:RE:RE:Don't Just Sell This POS

[AlwaysLong683]

Capharnaum wrote: 100% of the cost of the debt tied to the utilities gets passed into rates (in other words, the customers support the full cost of the interests related to the utilities), and 70% of the debt of AQN is tied to utilities, so the investors exposure to interest rates is limited.

ff that's the case I'm assuming AQN has no need to cut the dividend.....? If they do cut the dividend, they messed up somwhere as most investors in utility stocks do so for the dividend income and management knows this unless they have no idea who the bulk of their investors are.

There is no guarantee that utilities recoup 100% of their costs. If a utility wants to increase rates, they usually have to present their case before a Utilities Commission which returns a decision as to how much of an increase to grant the company based on whatever service agreement is in place.

Further, governments can pass legislation putting a cap on rate increases, as was the case recently with Emera.

If you want guarantees, GICs are probably your best bet.