RE:Another dividend cut ?If anyone out there still thinks that the investment advice from "analysts" is independant then look at the TD Investment conclusion. The market is subject to manipulation constantly and it looks like these guys are part of the process. How does a utility share price drop by 25% recently without news or any apparent change and then suddenly the market gurus alter their conclusions to validate the drop in price?
What has fundamentally changed? If you live your life on a day to day basis then for sure right now is not the ideal time to sell renewable assets at their longer term value. Just like selling real estate right now likely won't yield you the best price. However, if you have the profitability and liquidity to wait a little while - and Algonquin does - then why reflect distress selling prices in your share value? The rise in interest rates hasn't been fully reflected in the capital return rates yet for the regulated portion of the business - so some good news on the horizon. Recent speculation (inflation dropping to under 4%) is that interest rates have peaked and will start the path lower in 2024. So increasing prospects for higher profit, cashflow and liquidity. Interest rates falling will precipitate higher multiples for companies like Algonquin. Signs that the share price will be rising when you analyze and look to the future. A dividend rate now that's superior to debt yields while you wait for the market parameters to improve in 2024.
My take is that quick buck artists want to pick pockets now through fear and manufactured despair for their profit in the not too distant future. Do what you want with your money but this to me is a buy opportunity cheap and not a sell. I'll stay and add and reap that US$2 drop in value they're trying to justify along with the substantive dividend.