Algonquin cuts risk with savvy buys

Article Excerpt

Dear safe-money investor: Algonquin Power continues to expand through big acquisitions, which adds risk. Still, it focuses on making purchases that add immediately to its cash flow. Plus, its renewable energy projects sell their power under long-term government-guaranteed contracts. The company’s international expansion also cuts its geographic risk. ALGONQUIN POWER & UTILITIES $15.22 (Toronto symbol AQN; Shares outstanding: 490.5 million; Market cap: $7.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; operates through two main businesses: The Generation Group produces and sells electricity from 35 clean energy facilities across North America; and the Distribution Group provides regulated electricity, natural gas, water distribution and wastewater collection services. In the quarter ended December 31, 2018, revenue rose 2.5%, to $419.9 million from $409.5 million a year earlier. (All figures except share price and market cap in U.S. dollars.) Cash flow improved 5.2%, to $132.5 million from $126.0 million. However, on more shares outstanding due to acquisitions, cash flow per share fell 13.3%, to $0.26 from $0.30. In…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.