Q: AQN has fallen from grace for quite some time now.
The %Dividend Yield appears to be approx. 7.3%.
Do you see any potential catalysts/positives for this company?
Is there debt any better and can their cash flows support the high
dividend? Many thanks!
The %Dividend Yield appears to be approx. 7.3%.
Do you see any potential catalysts/positives for this company?
Is there debt any better and can their cash flows support the high
dividend? Many thanks!
5i Research Answer:
AQN is still looking at selling assets but nothing has been announced yet. This, or stronger earnings, would be the main potential catalysts. Debt rose $1B in 2023, and we need to see how the Q1 progressed on this metric (numbers out May 5). The dividend was lowered last year, and the payout ratio at the new rate is about 55%. The sector has been generally weak with continuned concern on inflation/rates. The stock is down 2.2% this year which is actually better than the utilities sector's -6.7% YTD performance.