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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

Comment by rusty777on Nov 14, 2022 1:19pm
293 Views
Post# 35097143

RE:Assets

RE:AssetsWell SvSingh - I agree they have some impressive assets, some of which they could divest, however, I would be surprised if that is on their radar.  I am not convinced they give a hoot about the company reputation so the most likely scenario is to cut the divi - especially whith a payout ratio of  397% of earnings (according to Simply Wall Stret).  Given that the CEO is earing almost 5 million a year and almost all of the senior leadership has a paycheck north of on million their focus is likely much more on maintaining their earnings than anything else.  The BoD is not much better with an average "honorarium" of over 250,000.00 it is unlikely that there is any incentive there to rock the boat.

Presently the divi is in the 9% range which is way out of whack with the rest of the industry so a drop back to 2 to 3 percent would not be a surprise to many.  Yes, that will result in a further drop in the share price as many investors (both retail and institution) are holding this for the divi and that may well cause them to re-evaluate their holdings and some (probably not all, but a sizeable percentage) will look elsewhere where there is better management and an equal or improved divi.

For those of us bag-holders who bought this north of $18.00 (yes I know - another one of my dumb moves) we have little choice but to hold this for a while longer - maybe average down in the $7.00 range and hope it struggles back into the low teens so we can bail without too much of a haircut.  But seeing it in the high teens or low twenties where it was only a few months ago will probably require a long wait...........and a new management.

We might see a short term bounce but given tax-loss season and the folks who are running this company - its likely not going back to where it was for some time.

GLTA

Rusty


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