Algonquin Power & Utilities Corp T.AQN

If they dont cut the divy

[SadieLadyCO]

we are looking at about 10% ...WOW...Cant go wrong...So even if they cut by 50% you are still looking at 5%..Divy Thats ok in my books

[1condor]

I still believe the divvy gets cut in half...question is when. Until then the stock will drift aimlessly in and out of the 9's. Would be better to just to get it over with now and get it out of the way. Not holder yet.

[AlwaysLong683]

When the current annual yield on a stock is over 9% (excluding one-time special dividends) while other stocks in the sector aren't tanking along with it, the market is expecting a dividend cut. My hunch is, if the dividend is cut, the share price won't be affected much and perhaps even rise on the news as the cut is already baked into the share price and would be viewed as prudent

[TheBridge]

Excellent and calculated call, AlwaysLong684. Appreciate you posting.

[AlwaysLong683]

Thanks for your kind words Bridge.

[svsingh83]

I totally agree with Long683. "Sustainable dividend" means  a cut.  However, they may keep the cut moderate buy dispoaing off assets alongside. Presently, It is difficult to get a good price for these asserts, so it is a Catch22 situation. I am sure they should be able to work out something by Q1. AQN is not going anywhere and should be OK after couple of years. Meanwhile SP

[Stratocheif]

When has a stock cut it's divi in half and stayed at the same price. I don't recall ever seeing that. If they cut it 50%, the sp will probably fall to around 5 or 6 as it will be confirmation to dividend investors the company can't sustain it and they will run for the exits. So if one believes a divi cut is coming, it's best to get out now isnt it. Then look for an entry later at a

[pjn0987654321]

Brett Girard, on BNN, may shed some light... "Bought shares twice as high as current prices. Sell half, take profits. An early casualty of rising interest rates with less free cash. The yield has jumped to 9.7%, so keep an eye on that, because if the dividend is cut, the share price will fall even more--though the price could rise too."

[newcoin]

So let me get this straight - the s/p could go up or down? Brilliant! I say the s/p won't fall further if the dividend is cut less than 50%

[1condor]

stratochief...that is why I will not enter the stock until there is clarity on the divvy. I am in the divvy cut group...and yes the price of the shares will fall when the divvy cut is announced. Dead money until the board makes the decision on the divvy cut amount (I suspect half).

[Nordico]

You are nuts to think a 50% div cut would result in a fall to $5-6. Give your head a shake.

[Stratocheif]

 Used to own Kinder Morgan. In 2015, thet cut thier divi from 50cents to 12cents. The sp fell from $43 to around $15 after that and has NEVER recovered

[Stratocheif]

I've seen this lots of times. Investors that buy utilities are looking primarily for a stable dividend that goes on forever. Once the divi is cut, this type of investor drops the stock like a hit potatoe and they don't come back because an element of trust has been lost

[Capharnaum]

Yeah, it certainly happened with Altagas... (not really...)