Forget bonds, buy these two utilities instead

Article Excerpt

These two green power stocks have moved down in the past few months. That’s mainly because the likelihood of higher interest rates in the coming months has increased the appeal of fixed-income investments. However, new projects for these two power providers should give them more cash for dividends. ALGONQUIN POWER & UTILITIES CORP. $18 is a buy. The company (Toronto symbol AQN; High-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 619.3 million; Market cap: $11.1 billion; Dividend yield: 4.7%; Dividend Sustainability Rating: Above Average; www.algonquinpower.com) has two main businesses: the Regulated Services Group provides regulated electricity, gas, water distribution and wastewater collection services in Canada, the U.S., Chile and Bermuda; and the Renewable Power Group produces electricity from about 40 clean-energy plants in North America. Algonquin raised its quarterly dividend with the July 2021 payment to $0.1706 U.S. a share from $0.1551 U.S. The new annual rate of $0.6824 U.S. yields a high 4.7%. The company’s outlook remains strong. It plans to spend $9.4 billion (all figures…