Topic: How To Invest

Dividend Advisor Hotline – Friday, January 20, 2017

Article Excerpt

ALGONQUIN POWER & UTILITIES CORP., $11.29, Toronto symbol AQN, operates through two main businesses: Generation and Distribution. The Generation Group produces and sells electricity across North America. It generates 1,385 megawatts of power through wind (65%), thermal (24%), hydroelectric (9%) and solar (2%) operations. The Distribution Group provides regulated electricity, natural gas, water distribution and wastewater collection services. Algonquin recently completed its purchase of Empire District Electric Co. for $3.2 billion. That’s more than its current market cap of $3.1 billion. Based in Missouri, Empire District serves over 218,000 customers through eight power plants. Growth by acquisition adds risk. But Algonquin cuts that risk by buying profitable utilities. In the case of Empire District, customer rates are set by utility regulators. That guarantees profits for the utility. Thanks to the extra cash flow from Empire, Algonquin will raise its quarterly dividend 10%, starting April 2017. The new payout will be $0.1165 U.S. a share, up from the current $0.1059. The new annual rate of $0.466…