Investment Q&A

Q: Retired, dividend-income investor. I own AQN and TRP for the very long term. I started buying AQN at $5.60 way back and I have trimmed for asset allocation targets on the way up.

I have cash available to add to both of these positions. When I look at the technicals, it looks to my amateur eyes that $49 and $56 respectively look to be good re-entry positions. Would you agree that adding is appropriate and at what levels would you add? Thanks...Steve

Q: Do you see any other utility stocks at risk of the same fate as AQN?

Thanks.

Q: Could you elaborate on your response to Tim saying you are comfortable in replacing AQN with either CPX or FTS in terms of the total dividend income under each option. Do you think that AQN's dividend is at such risk that it is the best option today to move out of AQN and take a lower dollar amount of dividends.
Thank you.

Q: I'm down 40% on AQN, and thinking of selling what would be a good replacement in the same sector and dividend yield.

Q: Hello 5i
Could you provide an indication as to buyhold/sell - all are current holdings but some due to declines have reduced to < 1% . I'm looking to rebalance overall and these need addressing with possibly topping up, selling or doing nothing ... ignore sector weights please. Already held for some time and any that I decide will remain will be held for the long term
Thanks

Q: Is this a good entry spot/time to buy AQN? and your comments please.

Q: I own Algonquin and as many of your members I am down. I see this as a long-term holding and do you see it as a HOLD. Thanks.

Q: I purchased AQN a couple of years ago and when it hit around $10 a week or so I purchased again doubling the amount I own. It is still not a significant amount of my holds.
However, I am wondering if I could sell the original amount purchased couple of years ago at a higher price and claim a capital loss for those shares even though I have purchased more recently.

Q: I just read this morning tour response to the possibility of a dividend cut st Algonquin. Then i read an article in the globe and mail about a number of directors buying shares. One would assume that they would know if a dividend were to be cut, no?
Thanks as always for the great advice

Q: Hi 5i,
sorry for beating this horse but I would appreciate your thoughts on AQN.
These are speculative events. Can you prioritize these possible future events and give some high level reasons they might do it. Priority #1 being the most likely if it ever happens. (a) approx. dividend cut by 50%. (b) issuing more shares. (c) buying back shares. (d) issuing more debt. (e) asset sales. (f) others? I noticed that there has been some insider buying buy the CEO very recently. Thanks for your thoughts!

Q: Hi 5i team,

Algonquin Power's yield is over 9% with recent drops on the share price. Can you please predict the odds for the company cuts the dividend? Is current CF able to cover the all the expenses?

thanks,

Q: I am aretired dividend investor and tend to keep stocks. My full position in AQN is nearing a half position (its in a RRIF so no tax loss selling). The 9.4% dividend for a Utility is extremely attractive. I am thinking of buying some more. I have read the questions and I realize a dividend cut could happen but since they will not report again until March 1, is a cut, if there is one, before then unlikely?

Q: I am a 60+ retired income investor,

I consider the above noted equities to be my riskiest holdings.

About 1,000 each - mostly in my cash account.

I understand SYZ reduced its dividend today and of course the issues with AQN.

Still up on AQN. Underwater on all the rest.

Looking for some advice - sell or hold by holding?

And of course any general comments would be appreciated.

Thanks very much.

Q: What does your crystal ball say about the potential of a large activist investor getting involved in aqn and shqking things up?

Q: I could use AQN as a tax loss against sufficient gains for tax year 2022. I believe that tax loss selling in AQN most likely is going on right now. Do you expect the pace of selling to increase or subside. I am wondering if I should hold off or pull the trigger now. What is your opinion?
Thank You!
Albert

Q: Hello Peter,
Greenland Renewables results did not seem to be that bad, but during the rally, the stock either stayed the same or declined. Can you comment please? During market call, the manager indicated BEP does not provide good value and feels taking dividends out of cash flow (instead of net income) does not make sense (unless i misunderstood). Also, i plan to hold AQN for dividend for long term and was wondering if that makes sense given your posted comments. Finally, is knight an example of company where one should not rely on past performance of a CEO? Thanks very much

Q: You are likely tired of questions on AQN so please bear with me. I have a full position in AQN, have long term investing horizons and like a steady dividend. Do you see AQN as a long term hold or should I just take my lumps and move on? thanks al

Q: Hello Peter
What is your opinion on Northland and Algonquin Power
Are the dividends safe ?
Which has the greater potential for growth

Thank you
Howard

Q: Hi Peter, Ryan, and Team,

Your last answer to a 5i member (Peter) regarding the sustainability of AQN’s dividend is more positive than David Berman’s piece in today’s Globe & Mail.

In light of his article, where he repeated a comment by a Scotiabank analyst: “We have taken all dividend growth out of our model and, even still, the payout ratio remains 103 per cent of earnings per share in 2023 and 97 per cent in 2024,” Robert Hope, an analyst at Bank of Nova Scotia, said in a note.

Algonquin’s management said last week that it was targeting a dividend payout ratio of 80 per cent to 90 per cent, meaning that the company expects to distribute no more than 90 per cent of its profits as dividends over the longer term.

“This payout ratio target would be above its peers and, in general, makes growing the business without external equity more difficult. If the company does pursue a full reset, we could see a reduction in the dividend,” Mr. Hope said.

Is 5i still of the opinion that the dividend won’t be cut? My feeling is that if in fact the dividend is cut, the stock will decline even further, and as always, welcome your thoughts.

Q: Do you see any danger of AQN becoming insolvent?
With appreciation,
Ed