Algonquin Power & Utilities Corp T.AQN

Attractive

[svsingh83]

If you are willing to wait a couple of years, this could be a good entry point. Dividend cut or no dividend cut.
Even with a dividend cut(50%) , yield will be 4.43% which is usally what yoy get with good companies.
Dividend cut will be seen as a positive steo by market and shorts will have to cover at that stage which will boost the SP>

[opsd1]

Are they planning to cut the dividend by 50%? Right now it's very attractive near 8%. Not to mention the potential upside rebound in the share price.

[svsingh83]

50% Divi cut is the worst case scenario. I do not think they will cut the divi. They may recycle some assets instead. They could also be bought out.

[liljohnnyjoke]

I believe they will cut by 50%, they don't want to under cut, then have to cut again after next quarter results which they have already said will also be dismal, then they are set up to do divy hikes down the road when the mess clears up

[1condor]

I suspect the company at best will consolidate around 10.50 (or fall slowly) until management addresses the company problems. So likely not need to rush in now and buy...however if you have that itch to buy then just wade in slowly. 

[Karl63]

I doubt that they will cut the dividend, instead opting to delay planned increases for 2023.  They have adequate cash flow to get them over this tight time, and things will look very different in a couple of months as project timing swings in their favor.  You also have to look at the psychology of management; to cut the dividend would be admitting that they faltered, and they won't

[1condor]

Karl63...Management has already faltered (the street already knows that)..so cutting the divvy is quite likely. I expect it to be cut by half as today's payout is not sustainable.

[Karl63]

Hello Condor - I very much respect your thoughts.  I'm not a believer in the efficient market hypothesis; in fact Buffet has said that if the markets were perfect, then he'd never have made a dollar.  Yes AQN is compromised, but not to the tune of 35% in two days.  I think there's a good chance that we'll see the low very soon, especially if belief changes about the

[1condor]

Karl63...I do agree and am not in the 7 or 8 dollar camp for AQN. I do believe it could dip into the 9's and that will be my initital entry point. Jjust basing on what I have seen with other companies over the years (similar situation) I figure the odds favour a cut to the divvy.

[pennydredful]

Dividend   decisions  are   made    by    BOD    not   management. 

[SargeX]

That is the identical logic for ALA right before they cut the divy by 56%, fired the CEO & CFO, and went into the toilet. Don;t kid yourself on hw these CEOs try to sling it. I didn;t own REI.UN nor VET but their CEOs also said the identical stuff - ie: no way we will ever cut our divy. It's too important to our investors. I am quite confident a 50% cut is comiong. Like someone said, it

[HighOctane89]

That's an interesting point of view Karl but if you are correct , why hasn't management said anything ? I have been watching this for a while and the volume of shares traded is starting to look like a capitulation event . I am looking for a good entry point but I won't try to catch this falling knife , when the selling subsides and the price reaches a happy place I'll put in a bid

[Karl63]

HighOctane; it does look like capitulation, doesn't it?  That probably just means that the weak hands are selling and going elsewhere more comfortable.  Those that buy in or remain are more risk tolerant and won't spook as easily with bad news. I think management should make an announcement; I don't know why they don't.  Perhaps they don't view the company's