Algonquin Power & Utilities Corp T.AQN

The Dividend will be cut Guaranteed !!

[RayDonovan78]

eom

[Capharnaum]

There is no reason for the dividend to be cut. There is a lag between costs and revenues in the regulated business, but costs are catched up on eventually so there is going to be a reversal with higher net income down the road. Higher cost of debt will be integrated in the regulated rates and if the rates stay high they'll even get higher return rates on capital as well. Adjusted FFO (p.11

[RayDonovan78]

I respectfully disagree. I have not crunched the #'s but they are not going to pay a 7-8% dividend for too long with higher interest rates on debt. 

[Tonyde]

@RoyDonovan78 "I respectfully disagree. I have not crunched the #'s but they are not going to pay a 7-8% dividend for too long with higher interest rates on debt"........ With all due respect, I could never understand when someone indicate that a percentage yield is no longer sustainable, simply because the market or trading price depreciated! Correct me if I'm wrong, (plunging

[bmbruce]

given their forecast of adjusted net EPS of .66 - .69 cents for 2022 and a current annual dividend payment .7232 cents per share together with the uncertainty surrounding their guidance going forward a dividend cut seems to me to be more likely than not...

[CANCDN]

  it's unfortunate you don't know how to read financial statements. Oh well.   

[Capharnaum]

In regulated utilities, most of the interest costs get passed on to customers. There is a timing difference before it's built in rates, so it's not immediate, but long term the interest costs don't affect significantly the cashflow generation on the regulated utilities side (which is 85% of their business). Hence, the interest rates on the debt for regulated utilities have no material

[BSdetector2016]

I appreciate this insightful commentary as I am sure others do. In my view the danger here, in addition to Banskota-led management, will be governments and Utility boards. They will seek to protect the public from inflation and will mount opposition to rate hikes. One only has to look at Emera and what it's facing whilst dealing with the moronic Nova Scotia government. I'm not saying that

[Nitehawk9]

This post has been removed in accordance with Community Policy

[rad10]

Strong stuff. Wishing someone dead - clearly this is an issue.