Utilities sector

[crimsonghost747]

(07-25-2021, 10:35 AM)fenders53 Wrote:

(07-25-2021, 09:54 AM)crimsonghost747 Wrote: Dilution has been their game for years, and will continue to be. Interest rates will definitely hurt them, just like they will hurt all utilities but yeah, more leverage here than what most of the big boys have.

I might indeed load up on some shares. If they can keep those 10% dividend increases going for a few more years, then I'd be sitting on a pretty great yield on cost while they figure out how to not go bankrupt just yet. This is a risky one, no doubt about that.

I listen to a lot of utility conference calls as I oft mention.  My UTEs also have their eyes on renewables growth.  They also make it clear they are going to act responsibly and grow with little or no new debt or share issue.  That works if last years new solar or windfarm farm goes instantly cashflow positive, which they have.  ALE will remain my spec UTE.  Their yield is close enough and I know they have adults in charge.  Just volatile enough to make option income every month and a good Div.  

If I was going to play AQN I would wait for the next capital raise because that is their published plan.  A share price dip would make the entry less risky, at least in the short-term.  Also it's a Canadian company with a majority of their revenue from the US.  I have no idea if they benefit from possible US infrastructure bills.  US jobs so maybe?

From what I can tell, the last real capital raise was in June. That is  the $16 to $15 dip you see in the middle of june. The one before that was July of last year. They do have an active ATM offer authorization but I guess this is more of a "little by little" way of raising capital and sales made through this are only reported on the quarterly reports?