Friday, May 8, 2020

Dividend Increase – Algonquin Power & Utilities Corp. (AQN)


Thursday, May 7th the Board of Directors of Algonquin Power & Utilities Corp. announced a quarterly dividend increase of from $ 0.1410 to $ 0.1551 per share that’s payable July 15, 2020 to holders of record June 30, 2020. This represents a 10.0% increase over last quarterly dividend.

The common share dividend will be paid in cash or, if a shareholder has enrolled in the shareholder dividend reinvestment plan (the "Plan"), dividends will be reinvested in additional common shares ("Plan Shares") of APUC as per the Plan.  Plan Shares will be acquired by way of a Treasury Purchase at the average market price as defined in the Plan less a 5% discount.

With current price CA$ 19.12 (Thursday's close), this raise brings their dividend yield to 4.52%.



AQN is a member of Canadian Dividend All-Star List with a 9 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.0, 10.0, 9.8 and 8.7. (Canadian Dividend All-Star List)




Since I own 500 shares of AQN, this will increase my portfolio's projected annual net dividend income by $ 21.01.

This increase raises my YOC to 7.21%.






Summary of 2020 Dividend Increases / Cuts





As you can see, a few rather large dividend cuts will have the effect that full-year growth is likely to remain negative. I also believe that there will come more cuts during this year.

Click here to see my portfolio holdings.

You can follow the development of my dividends here.

Full Disclosure: Long AQN

Thanks for stopping by!

2 comments:

  1. I live in Sweden so i own the AQN:TO...im afraid to own the AQN:NYSE...my thoughts are that i might get a higher taxation on the dividend? Do you own the Canadian or the NYSE?

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    Replies
    1. Hi Dividendius, I own Canadian, also AQN:TO. It should not matter from which stock exchange the company is bought, the domicile of the company determines the amount of withholding tax. I always try to buy the company from the domestic stock exchange, if only that is possible for me. If you are unsure about the amount of tax, you should ask your stockbroker.

      Thanks for visiting!
      DH

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