magical_light/iStock via Getty Images Dividend investing (SCHD) is a great way to compound wealth over time, and it has served me very well. One of the biggest reasons I like it is that when you invest in a stock with a consistent dividend payout, it gives you a reliable source of cash flow and total returns. This means that these stocks don't have to generate superman-like growth or valuation multiple expansion to deliver satisfactory total returns. Moreover, such stocks are fairly easy to value, enabl ...

Core Viewpoint - The article discusses the challenges faced by Algonquin Power & Utilities Corp. (AQN) due to a failed acquisition and the subsequent actions of activist investor Starboard Value LP, which has acquired a significant stake in the company and proposed a plan to enhance shareholder value through divestitures and debt reduction [2][3][4]. Group 1: Company Challenges - AQN's attempt to acquire Kentucky power assets from American Electric Power (AEP) failed, leading to high debt levels and a dividend cut, which negatively impacted investor confidence [2][4][7]. - The company's valuation has been hindered by excessive leverage, a high dividend payout ratio, and a significant proportion of unregulated assets, making it "uninvestable" for many traditional utility investors [4][7]. Group 2: Activist Investor's Plan - Starboard Value LP has purchased 58.4 million shares of AQN, representing just under 8.5% of the company, and believes AQN's regulated services group is undervalued compared to peers [3][4]. - Starboard proposes selling off AQN's unregulated renewables business to reduce leverage below 5.0x debt/EBITDA and to buy back equity, aiming for a more secure dividend and potential growth [4][5]. - The activist investor highlights AQN's water utility as a "hidden gem" that could allow the company to trade at a premium to peers, suggesting that divesting the renewables business could unlock significant shareholder value [4][5]. Group 3: Current Outlook - AQN is viewed positively due to its high yield of 7.3%, which is the highest among regulated utilities, and the expectation of sustainable dividends with growth potential beyond 2026 [5][10]. - The utility sector is considered attractive as interest rates may decline, making AQN's current valuation an appealing entry point for investors [5][10]. - AQN's share price is currently trading at a significant discount compared to its historical performance and peer valuations, primarily due to the fallout from the failed Kentucky Power deal [5][10].

OAKVILLE, ON, June 13, 2024 /PRNewswire/ - Algonquin Power & Utilities Corp. (TSX: AQN) (NYSE: AQN) ("AQN" or the "Company") today announced the settlement rate for the share purchase contracts that are components of its outstanding corporate units (the "Corporate Units") issued in June 2021. Holders of Corporate Units will receive 3.3439 common shares of AQN ("Common Shares") for each share purchase contract they hold, which results in an effective issuance price of $14.9526 per Common Share, with cash to ...

OAKVILLE, ON, June 4, 2024 /PRNewswire/ - Algonquin Power & Utilities Corp. ("AQN" or the "Company") (TSX: AQN) (NYSE: AQN) today held an annual meeting of common shareholders.  At the meeting, each of the following nine nominees listed in the Company's management information circular dated April 18, 2024 were elected as directors of AQN pursuant to a vote by ballot:Nominee Votes For % For Votes Against % Against Melissa Stapleton Barnes 330,041,306 97.05 % 10,016,318 2.95 % Brett Carter 337,316,968 99.19 % ...

tumsasedgars The past few years have been very tough for dividend stocks (SCHD), particularly sectors like REITs (VNQ), renewable power companies (BEP), and utilities (XLU), which have been hammered hard as rising interest rates have taken a toll on their capital-intensive and yield-sensitive business models. Additionally, numerous high-yield stocks have been completely decimated as they've had to either deeply cut or eliminate their dividends, including Lumen Technologies (LUMN), Medical Properties Tru ...

Core Viewpoint - Algonquin Power & Utilities Corp. (AQN) is progressing towards its strategic transformation into a pure-play regulated utility by entering into a support agreement with Energy Capital Partners and Atlantica Sustainable Infrastructure plc, facilitating the acquisition of Atlantica [1][2][3] Group 1: Transaction Details - Bidco will acquire 100% of Atlantica's shares for $22.00 per share in cash, representing an 18.9% premium to Atlantica's closing share price on April 22, 2024, and a 21.8% premium to the 30-day volume weighted average trading price as of the same date [2] - The transaction values Atlantica at approximately $2,555 million, with AQN's 42.2% stake valued at about $1,077 million [2] - AQN plans to use the proceeds from the transaction to reduce debt and recapitalize its balance sheet as part of its strategic transition [2] Group 2: Strategic Goals - The interim CEO of AQN, Chris Huskilson, emphasized that optimizing the value of the investment in Atlantica was a priority, and supporting the agreement aligns with the goal of simplifying the company's structure [3] - The exit from the financial investment in Atlantica is viewed as a significant step in AQN's strategic transition towards focusing on regulated utility operations [3] Group 3: Approval and Timeline - The transaction is subject to shareholder approval, court sanction, and various regulatory approvals, including those under the Hart-Scott-Rodino Act and from the Federal Energy Regulatory Commission [4] - The expected completion of the transaction is anticipated in the fourth quarter of 2024 or early first quarter of 2025 [4] Group 4: Company Overview - AQN is a diversified international utility with approximately $18 billion in total assets, providing energy and water solutions to over one million customer connections primarily in the U.S. and Canada [5] - The company has over 4 GW of installed renewable energy capacity [5]

Algonquin Power & Utilities Corp. (NYSE:AQN) Q1 2024 Earnings Conference Call May 10, 2024 8:30 AM ET Company Participants Brian Chin - Vice President of Investor Relations Christopher Huskilson - Chief Executive Officer Darren Myers - Chief Financial Officer Jeffery Norman - President of Renewables Conference Call Participants Nelson Ng - RBC Capital Markets Rupert Merer - National Bank Financial, Inc. Robert Hope - Scotiabank Benjamin Pham - BMO Capital Markets Mark Jarvi - CIBC Sean Steuart - TD Cowen Op ...

Revenue and Operating Performance - Revenue for Q1 2024 decreased to $737.1 million from $778.6 million in Q1 2023, a decline of 5.3%[2] - Operating income for Q1 2024 was $132.6 million, down from $142.5 million in Q1 2023, a decrease of 6.9%[2] - Regulated electricity distribution revenue decreased to $305.9 million in Q1 2024 from $316.0 million in Q1 2023, a decline of 3.2%[2] - Regulated natural gas distribution revenue decreased to $234.0 million in Q1 2024 from $271.1 million in Q1 2023, a decline of 13.7%[2] - Non-regulated energy sales revenue increased to $84.6 million in Q1 2024 from $78.7 million in Q1 2023, an increase of 7.4%[2] - Total revenue for the three months ended March 31, 2024 was $709.407 million, with $624.831 million from the Regulated Services Group and $84.576 million from the Renewable Energy Group[82] - Total revenue for the three months ended March 31, 2024, was $737.1 million, compared to $778.6 million in the same period in 2023, representing a decrease of 5.3%[85] - Regulated Services Group revenue for the three months ended March 31, 2024, was $674.5 million, while Renewable Energy Group revenue was $78.7 million[84] - Net revenue for the three months ended March 31, 2024, was $503.7 million, with Regulated Services Group contributing $421.0 million and Renewable Energy Group contributing $82.3 million[84] - Operating income for the three months ended March 31, 2024, was $142.5 million, with Regulated Services Group contributing $138.3 million and Renewable Energy Group contributing $6.3 million[84] Net Income and Losses - Net loss attributable to shareholders for Q1 2024 was $91.6 million, compared to net earnings of $268.0 million in Q1 2023[3] - Comprehensive loss attributable to shareholders for Q1 2024 was $91.3 million, compared to comprehensive income of $303.1 million in Q1 2023[6] - Net earnings for Q1 2024 were a loss of $120.3 million, compared to a profit of $249.6 million in Q1 2023[15] - Net loss attributable to AQN for the three months ended March 31, 2024 was $24.266 million, compared to a net gain of $2.281 million for the same period in 2023[40] - Net loss attributable to common shareholders for the three months ended March 31, 2024 was $91.558 million, compared to net earnings of $268.047 million for the same period in 2023[79] Cash and Liquidity - Cash and cash equivalents increased to $86.3 million as of March 31, 2024, up from $56.1 million as of December 31, 2023[8] - Cash and cash equivalents increased to $108 million at the end of Q1 2024 from $76.1 million at the start of the period[15] - Total liquidity and capital reserves as of March 31, 2024 were $1.895 billion, up from $1.002 billion as of December 31, 2023[48] Debt and Equity - Long-term debt increased to $8.8 billion as of March 31, 2024, compared to $7.9 billion as of December 31, 2023[10] - Total equity decreased to $6.4 billion as of March 31, 2024, from $6.6 billion as of December 31, 2023[10] - Long-term debt increased by $2.04 billion in Q1 2024, compared to $430 million in Q1 2023[15] - Total equity increased to $7.06 billion as of March 31, 2023, from $6.84 billion at the end of 2022[14] - Long-term debt as of March 31, 2024 was $8.849 billion, up from $7.894 billion as of December 31, 2023[45] - Long-term debt increased from $8,516.0 million in December 2023 to $9,089.7 million in March 2024, an increase of 6.7%[94][97] - Total financial liabilities increased from $8,652.9 million in December 2023 to $9,245.2 million in March 2024, an increase of 6.8%[94][97] Investments and Fair Value - Long-term investments carried at fair value decreased to $955.738 million as of March 31, 2024 from $1.116 billion in December 2023[35] - Fair value loss on investments carried at fair value was $158.332 million for the three months ended March 31, 2024[36] - Dividend and interest income from investments carried at fair value was $25.697 million for the three months ended March 31, 2024[36] - Equity-method investees had a carrying value of $442.906 million as of March 31, 2024, down from $456.393 million in December 2023[38] - The fair value of support provided to equity investees as of March 31, 2024 was $10.788 million, down from $12.666 million as of December 31, 2023[42] - AQN's maximum exposure to VIEs as of March 31, 2024 was $1.127 billion, down from $1.382 billion as of December 31, 2023[43] - Long-term investments carried at fair value decreased from $1,115.7 million in December 2023 to $955.7 million in March 2024, a decline of 14.3%[94][97] - Development loans and other receivables decreased from $158.1 million in December 2023 to $94.7 million in March 2024, a decline of 40.1%[94][97] - Total financial assets decreased from $1,357.1 million in December 2023 to $1,163.1 million in March 2024, a decline of 14.3%[94][97] Capital Expenditures and Investments - Additions to property, plant, and equipment totaled $212.5 million in Q1 2024, up from $169.7 million in Q1 2023[15] - Capital contributions of $9.874 million made to Texas Coastal Wind Facilities and projects under construction during the three months ended March 31, 2024[38] - Capital expenditures for the three months ended March 31, 2024 were $212.546 million, with $183.214 million from the Regulated Services Group and $29.332 million from the Renewable Energy Group[82] - Capital expenditures for the three months ended March 31, 2024, were $169.7 million, with Regulated Services Group accounting for $147.4 million and Renewable Energy Group accounting for $22.4 million[84] Acquisitions and Disposals - The company acquired the remaining 50% ownership in the Sandy Ridge II Wind Facility for $36.6 million in February 2024[23] - Acquired remaining 50% ownership in Liberty Development JV Inc. and Liberty Development Energy Solutions B.V. for a combined purchase price of $7.859 million[25] - Sold 100% equity interest in the 74.9 MW Windsor Locks Thermal Facility for $17.721 million[25] - The Company acquired the remaining 50% ownership in Liberty Development JV Inc. on January 4, 2024[66] - Algonquin Power Fund (America), LLC sold its 100% equity interest in the Cedar 1 Solar Project to Ashusa Inc. for $2 million and reimbursement of costs incurred[67] Regulatory and Tax - Regulatory assets totaled $1.234 billion as of March 31, 2024, a decrease from $1.328 billion in December 2023[32] - Securitized costs of $301.463 million related to the Midwest Extreme Weather Event and energy transition costs[34] - Income tax recovery for the three months ended March 31, 2024 was $11.303 million, compared to an expense of $24.701 million for the same period in 2023[72] - The company's net deferred tax asset position related to Canadian attributes increased from $151.759 million to $168.557 million during the three months ended March 31, 2024[75] Shareholder and Compensation - Cash dividends on common shares decreased to $73.7 million in Q1 2024 from $95.9 million in Q1 2023[15] - Share-based compensation expenses rose to $5.1 million in Q1 2024 from $696,000 in Q1 2023[15] - Total share-based compensation expense for the three months ended March 31, 2024, was $5,110 thousand, compared to $696 thousand in the same period in 2023[57] - A total of 737,235 performance share units (PSUs) and restricted share units (RSUs) were granted to employees during the three months ended March 31, 2024[59] - Dividends declared on common shares for the three months ended March 31, 2024, were $75,467 thousand, with a dividend per share of $0.1085[64] Other Financial Metrics - Depreciation and amortization expenses increased to $129.5 million in Q1 2024 from $121.6 million in Q1 2023[15] - The company received $60.5 million in contributions from non-controlling interests in Q1 2024, compared to none in Q1 2023[15] - Accounts receivable as of March 31, 2024 include unbilled revenue of $80.937 million, down from $107.001 million in December 2023[26] - The company recorded an impairment loss of $1.481 million in 2023 due to the sale of equity interests in Liberty Jimena, S.L., Liberty Caparacena, S.L., and Liberty Infrastructuras, S.L. to Atlantica[67] - Net effect attributable to non-controlling interests was $31.159 million for the three months ended March 31, 2024, compared to $20.529 million for the same period in 2023[70] - Renewable energy business sale costs for the three months ended March 31, 2024 were $5.909 million[76] - Total assets as of March 31, 2024 were $18.307 billion, with $12.603 billion from the Regulated Services Group and $5.309 billion from the Renewable Energy Group[82] - Total assets as of March 31, 2024, were $18.4 billion, with Regulated Services Group contributing $12.7 billion and Renewable Energy Group contributing $5.4 billion[84] - The company accrued estimated losses of $66,000 for claims related to the Mountain View Fire, with expected recoveries from insurance of $66,000, resulting in a net charge to earnings of $nil[88] - Total commitments for power purchase, natural gas supply, and service agreements as of March 31, 2024, amounted to $1.8 billion, with the largest portion ($553.7 million) allocated to service agreements[90] - Changes in non-cash operating items for the three months ended March 31, 2024, resulted in a net decrease of $54.5 million, primarily due to a decrease in accounts payable and accrued liabilities[92] - The fair value of energy contracts is determined using internally developed forward market prices ranging from $15.47 to $155.17 with a weighted average of $40.68 as of March 31, 2024[99] - The weighted average forward market prices for energy contracts are based on the quantity of energy expected to be sold monthly and the expected forward price during that month[99] - The significant unobservable inputs used in the fair value measurement of CRRs are recent CRR auction prices ranging from $0.61 to $38.17 with a weighted average of $4.64 as of March 31, 2024[99] - The significant unobservable inputs used in the fair value measurement of the Company's AYES Canada investment include expected cash flows, discount rates ranging from 8.32% to 8.82% with a weighted average of 8.53%, and expected volatility of Atlantica's share price ranging from 27.47% to 33.19% as of March 31, 2024[99] - The Company uses derivative financial instruments to reduce cash flow variability associated with future natural gas purchases, with a strategy to minimize fluctuations in natural gas sale prices to regulated customers[99] - The company has entered into long-term energy derivative contracts to mitigate price risk on the expected future sale of power generation, with notional quantities totaling 3,381,054 MW-hrs, 315,110 MW-hrs, 1,343,841 MW-hrs, and 1,220,525 MW-hrs, expiring between 2027 and 2030[102] - The company expects $36,128 of unrealized losses currently in AOCI to be reclassified into earnings within the next 12 months as underlying hedged transactions settle[106] - A foreign currency gain of $12,588 was recorded in OCI for the three months ended March 31, 2024, compared to a gain of $321 in the same period in 2023[106] - The company is party to a C$300,000 fixed-for-fixed cross-currency interest rate swap to hedge foreign currency exposure of its net investment in U.S. operations, recording a loss of $4,004 for Q1 2024[108] - The company is party to a C$400,000 cross-currency interest rate swap to hedge foreign currency exposure of its net investment in U.S. operations, recording a loss of $6,974 for Q1 2024[108] - The company has an interest rate cap agreement in the amount of C$390,000 for the period between January 15, 2024 and June 17, 2024[110] - The company has a long-term energy derivative contract with a notional quantity of 336,444 MW-hours at $25.15 per MW-hr, expiring in August 2030, to hedge price risk on expected future power generation sales[110] - Unrealized losses on energy derivative contracts and commodity contracts totaled $696 and $890, respectively, for Q1 2024[111] - Realized losses on energy derivative contracts totaled $2,293 for Q1 2024[111] - The company has CRRs with a notional quantity of 1,969,065 MW-hours at prices ranging from $0.84 to $19.06 per MW-hr to mitigate energy congestion charge volatility[108] - Accounts payable include confirmed invoices from designated suppliers of $67,230 as of March 31, 2024, compared to $62,173 as of December 31, 2023[112] - The company's supplier financing programs allow suppliers to voluntarily sell their receivables, with payment terms consistent with customary industry practice[112] - Certain comparative figures have been reclassified to conform to the unaudited interim condensed consolidated financial statement presentation adopted in the current period[113]

Core Points - Algonquin Power & Utilities Corp. has declared dividends for common and preferred shares, with a common share dividend of US$0.1085 payable on July 15, 2024, and preferred share dividends of C$0.41100 for Series A and C$0.42831 for Series D, both payable on July 2, 2024 [1][2][4] Group 1: Dividend Details - The common share dividend is US$0.1085, payable to shareholders of record on June 28, 2024, for the period from April 1, 2024, to June 30, 2024 [1] - Preferred share Series A will receive C$0.41100, and Series D will receive C$0.42831, both payable to holders of record on June 14, 2024 [1] - The Canadian dollar equivalent of the common share dividend is based on the Bank of Canada daily average exchange rate on the day before the declaration date [4] Group 2: Dividend Reinvestment Plan - The dividend reinvestment plan (DRIP) for common shares was suspended effective March 16, 2023, with potential reinstatement in the future [2] - Shareholders enrolled in the DRIP at its suspension will automatically resume participation if it is reinstated [2] Group 3: Company Overview - Algonquin Power & Utilities Corp. has approximately $18 billion in total assets and provides energy and water solutions to over one million customer connections, primarily in the U.S. and Canada [5] - The company owns, operates, and has net interests in over 4 GW of installed renewable energy capacity [5] - Common shares and preferred shares are listed on the Toronto Stock Exchange and New York Stock Exchange under various symbols [5]

Investors are always looking for stocks that are poised to beat at earnings season and Algonquin Power & Utilities Corp. (AQN) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Algonquin Power & Utilities is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date informat ...