Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) consists of diversified regulated utilities across natural gas, electric, and water utilities, and non-regulated renewable energy across wind, solar, hydro, and thermal generation. Its renewable and clean energy facilities are mostly under long-term contracts (averaging about 13 years) with inflation escalations.
Regulated utility Fortis (TSX:FTS)(NYSE:FTS) has a long dividend-growth streak. It has 48 consecutive years of dividend increases, which is the second-longest streak on the TSX. Because of the transition to net-zero emissions, renewable and clean energy are good places to consider investing in. Algonquin offers the best of both worlds in having regulated utilities and a renewable portfolio.
A dividend stock with a high yield
The dividend stock provides a relatively high yield of 4.8% today. According to the line of thought used in The Single Best Investment by Lowell Miller, 4.8% is a big yield because it’s 1.88 times that of the stock market yield of 2.55%. Miller thinks a yield that’s 1.5 – 2 times that of the market is high.
Read More