As far as dividend stocks go, Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) remains high on my list of top options income-oriented investors ought to consider.
This company is primarily a utilities player, with approximately 75% of its revenue originating from regulated utilities. The other one quarter of the company’s revenue is driven by the company’s renewable power portfolio, a key growth segment and one which is loved by the market and institutional investors specifically.
These operations result in very stable and solid cash flows which the company relies upon to pay its juicy dividend which has hovered around 4.5% of late.
Out of all its peers with a mid-single digit dividend yield, Algonquin is probably my top choice as a stock pick due to its business model and the quality of the company’s management team.
Algonquin has utilized its world-class management team to engage in a growth by acquisition business model, and is among the best Canadian companies at successfully integrating said companies into its structure and improving their ROE and ROA.
Algonquin has recently completed a $900-million equity financing which should take care of all of the company’s capital needs for the near-term. This move will also provide additional room for more acquisitions, and lay the groundwork for additional growth over the medium-term.
This is a great long-term dividend stock to own, and I expect this stock will not disappoint from an income or capital appreciation standpoint for investors.
Invest wisely, my friends.
