Recent Buy – Algonquin Power & Utilities Corp

AQN

A quick update on a recent purchase in my portfolio this week. I had a GTC order sitting on this company for a little while which got executed and I managed to pick up a nice chunk of shares at a decent valuation.

I bought 200 shares of Algonquin Power & Utilities Corp (AQN.TO) @ C$11.00. The company currently yields 5% adding US$84.70 (the company pays dividends in US$) to my forward dividend income.

Only new developed since last purchase earlier this year is that the company is now cross-listed on the NYSE (symbol: AQN). Other than that, its business as well. The company is well run, provides great exposure to US utilities in all three subsectors — electric, natural gas and water, has arguably the most impressive revenue growth and earnings growth story in the sector, and offers lucrative dividends, which are expected to rise by 8-10% over the next few years.

To read a more detailed description, check out my last post where I profiled this company.

Recent Buy – Algonquin Power & Utilities Corp

Full Disclosure: Long AQN.TO. My full list of holdings can be found here.

 

Exelon Corp Dividend Stock Analysis

Exelon Corp (EXC) operates in the electric and natural gas distribution business servicing Illinois, Pennsylvania, and Maryland. The company suffered during 2012/2013 as it saw profits fall and the company had to resort to cut its dividends. The dividend cut resulted in the stock getting punished severely, as the income investors headed to the exit door. However things are starting to turn around as the company just raised its dividend for the first time in April (a 2.58% raise) since the cut and currently appears slightly undervalued. There is a potential for some upside movement over the next year, but the company also faces closure of its best performing (albeit losing) nuclear power plants in Illinois.

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PPL Corp Dividend Stock Analysis

PPL Corporation (PPL), a utility company, delivers electricity and natural gas in the United States and the United Kingdom. The company has a track record of growing dividends and is continuing to invest to grow those earnings in the coming years. PPL Corp is a Dividend Challenger having raised dividends for 15 consecutive years. The 1-, 3-, 5- and 10-year dividend CAGRs are 8.1%, 3.7%, 2.8% and 5.3% respectively. Coupled with a current dividend yield of 3.97%, PPL has a Chowder Rule number of 6.7. This article takes a closer look at PPL Corp’s business segments, outlook and a complete dividend stock analysis.

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Recent Buy – Algonquin Power & Utilities Corp

AQN

Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to keep investing at regular intervals and build my passive income over the course of time. The market may go up and down depending on a plethora of events, but I look for safe dividends and developing income streams building my own pension.

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Xcel Energy Inc Dividend Stock Analysis

Xcel Energy

Xcel Energy Inc (XEL) is is an electric and gas utility company operating in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company’s operations are composed of 90% electric (serving 3.5M customers) and 10% in the natural gas (serving 2M customers) segment.

Electric utilities in general have seen slower sales industry-wide amid a combination of energy conservation, energy efficiency and shift towards independent power generation/natural gas usage. Coupled with the new regulations from the US government to reduce carbon emissions, electric utilities have started focusing a shift away from dirty fuels such as coal. XEL relies heavily on the electric utility business segment, which makes 90% of the company’s earnings. As we’ve seen with other companies in the sector, this is resulting in falling revenues and competitors have resorted to buying natgas infrastructure assets. XEL needs a similar approach. Earnings are expected to grow at 4.68% over the next five years according to analysts and dividend growth is targeted to be in the range of 5-7% CAGR, although it might fall closer to the lower end of that target range.

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