Tag Archives: TSX:AQN

3 Top Dividend Growth Stocks For Now

Are you looking for stable growing income? If so, you should have these stocks on your radar. They offer sustainable yields of 4.5-5.6% with dividend growth potential of at least 5% per year.

High-growth utility with a 4.5% yield

Algonquin Power & Utilities Corp (TSX:AQN)(NYSE:AQN) has returned about 24.6% on the TSX in the last 12 months. The utility offers a U.S. dollar-denominated dividend which benefits Canadian investors no matter if they opt to receive its dividend in the Canadian or U.S. currency. For U.S. investors, Algonquin offers above-average growth in the relatively stable utility space.

Algonquin continues to execute. In Q1, its adjusted earnings per share increased 19% and its assets grew 94% compared to Q1 2016.

These are thanks partly to its acquisition of Empire, which added 218,000 new water, gas, and electric utility customers to its portfolio, as well as 1,400 MW of regulated electrical power generation.

wind-power facility

Photo: warrenski. License: CC SA 2.0 Source: flickr

Algonquin also put in service 210MW of net power generation capacity, of which 160MW has 20 years of power purchase agreements, which implies stable cash flow generation from those facilities.

The utility offers an above-average yield with an above-average growth rate. Due partly to the strength of the U.S. dollar, Algonquin yields 4.5% and aims to grow its dividend by 10% a year.

Thomson Reuters analysts have a mean 12-month price target of C$14.20 on the stock. So, it’s fairly valued. Investors looking for stable, growing income can consider the shares today. However, weakness in the U.S. dollar will bring the yield down for Canadian investors. Investors looking for a margin of safety¬† should wait until a pullback to at least the low C$13 level.

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A High-Growth Utility for a Rising Income

Income investors would love this stock. It offers a growing dividend in a stable and growing industry. And get this. The company yields +5% today and has higher growth potential than its peers! Just how fast can its dividend grow and what kind of returns can you expect? Read on to find out.

Algonquin Power & Utilities Corp (TSX:AQN)(NYSE:AQN) has been busy making merger & acquisition deals since late 2010. The first deal completed in Q1 2011. Fast forward to today, the utility now has C$6.3 billion of North American assets.

solar power facility

Photo: M.O. Stevens. Cropped. License: CC by 3.0 Source: Wikimedia Commons

Algonquin’s portfolio

Firstly, Algonquin owns and operates wind, solar, hydroelectric, thermal, and natural gas power-generating facilities, which have an installed capacity of 1,300 megawatts.

Secondly, the utility provides essential water, electricity, and natural gas utility services to more than 560,000 U.S. customers. These are rate-regulated services that generate stable and predictable earnings for the utility.

Thirdly, the company is involved in rate-regulated electric transmission and natural gas pipeline systems in the U.S. and Canada.

A growing dividend

Since Algonquin pays a U.S. dollar-denominated dividend, Canadian investors holding it on the TSX will experience yield volatility based on the strength of the U.S. dollar to the Canadian dollar.

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3 Tips to Maximize the Returns of Your Dividend Portfolio

Here are three tips I use to maximize the returns of my dividend portfolio. You can adopt the tips to improve your returns.

saving, investing, and compounding

Source: ccPixs.com

The goal? To maximize returns while earning a growing dividend. Some investors think of dividends as a source of cash to pay their bills. That serves as a motivation for them to earn more dividends, until all bills are paid regularly. After which, they become financially independent.

That’s a fine way to think of dividend investing, but you can get to financial independence quicker. Here’s how. Read More