Investors looking for stable, long-term dividend growth should consider investing in Algonquin Power & Utilities Corp (TSX:AQN)(NYSE:AQN). The company focuses on renewable energy sources, including wind, solar, hydroelectric, and thermal. Algonquin has an interest in more than 35 facilities across North America that generate clean energy.
As people continue to demand cleaner and more sustainable energy sources, a company like Algonquin could stand to benefit from significant growth. In just three years the company has seen its sales rise nearly 60%, and there could be more on the way.
It’s not just sales that are growing, the company has a history of growing its dividends as well. The company’s current dividend yields 4.2%, and for Canadian investors the payouts can offer some variability since the payments are in U.S. dollars.
Current quarterly payments of US$0.1165 have grown from US$0.0875 three years ago, for a compounded annual growth rate of 10%. If Algonquin were to maintain this rate of increase in its payouts then it would take a little more than seven years for the dividend to double.
Algonquin’s stock is an ideal addition for investors looking for a quality long-term investment as the company provides a lot of stability and growth, while at the same time doesn’t exposeinvestors to a great deal of risk. Utilities are generally stable investments that are needed all year round, and that makes Algonquin’s stock a great one to hold for the long term and onewhere investors can just sit back and collect dividends.
Year-to-date the stock has risen 20% and over five years the share price has doubled.