ALGONQUIN POWER & UTILITIES CORP. $6.20 - Toronto symbol AQN

ALGONQUIN POWER & UTILITIES CORP. $6.20 (Toronto symbol AQN; Shares outstanding: 136.1 million; Market cap: $843.8 million; TSINetwork Rating: Extra Risk; Dividend yield: 4.5%; www.algonquinpower.com) holds interests in 45 hydroelectric plants in Canada and the northeastern U.S. It also owns 12 thermal energy facilities. Algonquin’s wholly owned subsidiary, Liberty Water Co., owns 19 water-distribution and sewage treatment plants in the U.S.

The company also has a partnership with Emera Inc. (Toronto symbol EMA), which is a recommendation of The Successful Investor, our conservative growth advisory. Emera holds a 24.4% interest in Algonquin. This partnership, called Liberty Energy Utilities, continues to make acquisitions.

Liberty Energy’s purchases include NV Energy, which sells power to 47,000 customers near Lake Tahoe; Atmos Energy, which distributes natural gas to 83,000 customers in Missouri, Iowa and Illinois; and two other utilities that sell electricity and natural gas to 130,000 customers in New Hampshire.

In the three months ended September 30, 2011, Algonquin earned $0.16 a share, compared to $0.01 a share a year earlier, on strong power generation. Cash flow per share rose 63.6%, to $0.18 from $0.11.

Algonquin yields 4.5% and trades at just 7.2 times its forecast 2012 cash flow of $0.86 a share.

Algonquin Power & Utilities is still a buy.

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