One of my favourite dividend options for investors has been Algonquin Power and Utilities Corp. (TSX:AQN)(NYSE:AQN) for a variety of reasons. In this article, I’m going to discuss why I believe Algonquin’s dividend in the mid-single digits is only one of its attractive attributes, and why this stock ought to be on every Canadian investor’s watch list today.
Algonquin’s dividend yield remains substantial, and has hovered around the mid-single digits for some time despite a vast amount of market volatility due in large part to the stability of the company’s cash flows and the nature of Algonquin’s core business.
As a regulated utility focuses primarily in the U.S., Algonquin’s cash flows are almost entirely locked in. The fact that around 95% of the company’s revenue originates in the U.S. is very bullish for Canadian investors particularly when the Canadian dollar is low. The company’s dividend is also paid in U.S. dollars, another boost for Canadian investors.
Algonquin’s ability to grow its cash flows over time can largely be attributed to the company’s ability to acquire unloved assets from its peers at great prices and successfully integrate these assets into its core business over time. Algonquin is a utility that grows, making it somewhat unique in its sector, and a favourite income pick of mine accordingly.
Invest wisely, my friends.
