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  5. AQN: Looking for a generous dividend with some growth and reasonable volatility for a long term hold. [Algonquin Power & Utilities Corp.]
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Q: Looking for a generous dividend with some growth and reasonable volatility for a long term hold. Which would you suggest? Are there tax issues with a royalty company like FRU?
Asked by Graeme on May 16, 2025
5i Research Answer:

FRU and most Canadian royalty companies have no additional tax issues. Dividends are eligible dividends. Of this list, it is important to distinguish between companies with significant commodity exposure (FRU and PSK) and companies that are more utility-like (AQN and NPI). The latter are generally safer and less volatile. Thus we would prefer NPI here, and might also suggest ENB as well with a 6.01% yield and also significantly larger than all of these. 

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