One of my top picks for some time now has been Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) due to the unique make-up of the utility compared with its peers. Recently, shares of Algonquin Power have traded lower by more than 10% on concerns about rising interest rates from the Bank of Canada, and I’m going to discuss why I believe the most recent dip in this company’s stock price presents an interesting opportunity for long-term investors willing to buy the dip.
Investors have different investing goals, and accordingly seek out investments that suit their needs. For retired investors, income may play a more important role than growth, whereas a younger investor with a very long time horizon may be more interested in a stock with significant growth potential, hoping to capture the long-term upswing in a specific stock or industry over time.
One of the main reasons why Algonquin Power remains one of my top picks is the balanced make-up of long-term growth and near-term dividend yield, providing investors with different goals and investing time horizons with reasons to purchase this versatile utility.
Algonquin Power also trades in both the Canadian and U.S. markets, allowing investors who are interested in hedging out the exchange rate risk an opportunity to do so by buying the security on both exchanges.
With Algonquin shares now trading at a 10% discount, investors looking to build a long-term position in this utility have an interesting entry point.
Invest wisely, my friends.
