Q: First is Algonquin dividend "safe" and secondly what is an investor to make of the Starboard 5% stake anouncement . Thanks John
5i Research Answer:
With AQN's dividend cut this year, we are not concerned about the dividend at this time. Payout ratio should be decent this year with continued strong cash flow. Starboard is an activist investor with 5% of AQN shares (with 7.5% economic interest through derivatives). For now, it is just an 'investment' but the fund calls AQN undervalued and may seek board representation or offer advice otherwise. We see it as a positive development for shareholders.