In an ever-changing world in which utilities companies remain challenged by global demands for renewable energy, companies such as Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) have constantly been on the prowl for opportunities to expand operations within the renewable energy sector.
Algonquin Power’s growth model is one which is underpinned by a prudent long-term acquisition model based on acquiring companies or businesses within the energy sector which provide significant room for investment and growth.
In recent years, Algonquin Power’s management team has placed an emphasis on acquiring businesses in the renewable energy space, identifying profitable opportunities within a sector which is poised to grow as global demand continues to shift toward renewable energy options.
This past week, Algonquin Power announced the acquisition of a portfolio of renewable energy assets from Spanish company Abengoa SA, picking up said assets at an attractive price, given the distressed nature of Abengoa’s operations of late. This move further diversifies Algonquin’s operations, providing investors with another level of diversification, as the company makes a bid to become a truly global provider of energy solutions.
With a dividend of 4.3%, investors receive a handsome yield in addition to a strong growth profile, given the company’s impressive track record of acquiring and integrating companies into its corporate portfolio. For investors seeking long-term capital appreciation and growth, Algonquin Power should be on every investor’s radar.
Invest wisely, my friends.
