Topic: How To Invest

Dividend Advisor Hotline – Friday, January 28, 2022

Article Excerpt

ALGONQUIN POWER & UTILITIES CORP., $17.86, Toronto symbol AQN, is a top pick for 2022. The company 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 last raised your quarterly dividend with the July 2021 payment. Investors now receive $0.1706 U.S. a share, up 10.0% from $0.1551 U.S. The new annual rate of $0.6824 U.S. yields a high 4.9%. The company tends to fuel its growth with acquisitions. It cuts the risk of that strategy by focusing on rate-regulated utilities. Its latest purchase is Kentucky Power Co., which generates and distributes electricity to 228,000 customers in Kentucky. Algonquin will pay $2.85 billion U.S. when it completes the purchase in mid-2022. This purchase, along with new investments in its current operations, should give Algonquin more cash for dividend increases. Those new assets will also…