Smaller utilities offer investors big yields

Article Excerpt

Dividend-seeking investors tend to stick with big utility firms such as TC Energy and Enbridge. However, we continue to advise you to add smaller utilities such as Algonquin and Pembina. Both have growing bases of high-quality assets that support their high yields. ALGONQUIN POWER & UTILITIES CORP. $19 is a buy. The company (Toronto symbol AQN; High-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 611.8 million; Market cap: $11.6 billion; Dividend yield: 4.4%; 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. The company also owns 44.2% of U.K.-based Atlantica Yield plc (Nasdaq symbol AY). Its renewable energy assets are in Europe, North and South America, and Africa. Algonquin raises your quarterly dividend by 10.0% with the July 2021 payment, to $0.1706 U.S. a share…