Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Algonquin Power & Utilities Corp T.AQN

Alternate Symbol(s):  AQN | T.AQN.PR.A | T.AQN.PR.D | AGQPF

Algonquin Power & Utilities Corp. is a Canada-based diversified international generation, transmission, and distribution company. The Company through its two business groups, the Regulated Services Group, and the Renewable Energy Group, provides sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. The Company is engaged in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. The Company owns, operates, and/or has net interests in over four gigawatts (GW) of installed renewable energy capacity. The Company is focused on its expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions.


TSX:AQN - Post by User

Post by CANCDNon Nov 12, 2022 2:44pm
460 Views
Post# 35093890

For those that don’t understand accounting- dividend

For those that don’t understand accounting- dividend

I rarely post on Stockhouse, but thought I would educate those who don't understand financial statements. 


Operating cash flows INCLUDE depreciation. For example, if you make 200 million and have 100 million of depreciation, your operating cash flow is 100 million. If your dividend payout is 100 million, you would think your payout is 100%. But this is so wrong.

The MOST important metric for asset heavy industries like Reits and Utilties is Adjusted Funds from Operations (AFFO).

The example above, the AFFO would be about 200 million because DEPRECIATION is an accounting expense to LOWER taxes, but doesn't remove a CENT from the bank. You still have 200 million in cash in the bank. 

if you think AQN is going to cut when the payout of actual AFFO is 55%, then keep selling.
 

<< Previous
Bullboard Posts
Next >>