Two power income trusts: one buy, one hold

Article Excerpt

ALGONQUIN POWER INCOME FUND $5.70 (Toronto symbol APF.UN; SI Rating: Extra Risk) has interests in 41 hydroelectric facilities — four in Ontario, 12 in Quebec, 13 in New York State, nine in New England, one in Alberta, one in New Jersey and one in Newfoundland. This represents total generating capacity of 141 megawatts. Algonquin also has interests in five natural gas-fired plants, a 99-megawatt wind plant, one energy-from-waste plant and two biomass facilities in Canada and the U.S. It also has stakes in 17 water-distribution and wastewater-treatment facilities in the U.S. In the three months ended June 30, 2008, revenues rose 13.4%, to $54.2 million from $47.8 million a year earlier. The increase came from higher power-generation levels and energy rates, offset somewhat by the effects of a higher Canadian dollar. However, cash flow per unit fell 16%, to $0.21 from $0.25, mostly because of higher costs. Algonquin Power currently yields 16.1%. The fund pays out around 110% of its cash flow…

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.