Topic: How To Invest

Dividend Advisor Hotline – Friday, January 31, 2020

Article Excerpt

ALGONQUIN POWER & UTILITIES CORP., $20.26, Toronto symbol AQN, is a top pick for 2020. The company operates through two main businesses: the Liberty Power Group produces and sells electricity from 39 clean energy facilities across North America; and the Liberty Utilities Group provides regulated electricity, natural gas, water distribution and wastewater collection services. Algonquin last increased its quarterly dividend in July 2019. Investors now receive $0.141 U.S. a share, up 10.0% from $0.1282 U.S. The new annual rate of $0.564 U.S. yields a high 3.7%. The company plans to further increase that rate by 10% each year in both 2020 and 2021. Algonquin tends to fuel its growth through acquisitions. However, it cuts your risk by buying profitable utilities. The company also sells its power under long-term government-guaranteed contracts, which further secures your investment. The stock, which has gained 40% for our subscribers in the past year, still trades at an affordable 13.3 times Algonquin’s projected 2020 cash flow of $1.15 U.S. a..

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