ALGONQUIN POWER & UTILITIES CORP. $6.96 - Toronto symbol AQN

ALGONQUIN POWER & UTILITIES CORP. $6.96 (Toronto symbol AQN; Shares outstanding: 205.0 million; Market cap: $1.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.9%) has nearly tripled in size over the last year through a series of acquisitions.

The company’s regulated utility businesses now provide water, electricity and natural gas utility services to over 470,000 customers, up from 120,000 a year ago. Its hydroelectric, thermal energy and wind plants currently generate 1,100 megawatts of power, up from 460 megawatts.

Emera (Toronto symbol EMA), a recommendation of The Successful Investor, our conservative growth advisory, owns 24.5% of Algonquin.

Algonquin made four acquisitions in 2012, and it has completed another four so far this year. Most recently, the company bought a natural gas distribution utility in Georgia serving 64,000 customers for $140.7 million U.S.

These moves are paying off. In the quarter ended March 31, 2013, acquisitions pushed up Algonquin’s revenue sharply, to $196.7 million from $63.4 million a year ago. Cash flow per share also jumped, to $0.23 from $0.09.

Rapid growth by acquisition adds risk. But Algonquin cuts that risk by buying profitable utilities. It also ensures that its renewable energy projects sell their power under long-term, government- guaranteed contracts.

The company just raised its dividend by 9.7% and yields 4.9%. The stock trades at 7.7 times Algonquin’s forecast 2013 cash flow of $0.90 a share.

Algonquin Power & Utilities is still a buy.

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