Investment Q&A

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: Hello Peter,
What is your outlook for Oil the next 6 months, in the context of a slowing demand and Russian supplies to China and India? Would you consider one of the best stocks to get into after a pullback last few days?
Appreciate your comments as always.
Regards.
Rajiv

Q: How does this stock compare to others in its sector? When specifically comparing others in its sector, what are the potential risks associated with this stock?

Q: Could you offer your analysis and outlook on KRP:US? Holding some TPZ, I am intrigued by the royalty model and this company's strong but variable dividend.

Many thanks.

Q: Is there any reason for concern about ALA,s recent drop . Should I hold as I am still up?

Q: Would under $8 be a good entry price for PHX?

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

Q: Great news release yesterday….
No debt, 50% dividend increase, NCIB

https://alvopetro.com/News-Events

Why would they want to purchase shares when the float is only 35m and very thinly traded to start with?

Thank you

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: Thank you for your response on CNQ vs GXE. I omitted one other potential and would like your comparison between CNQ, GXE, AND PXT. I know Parex carries some political risk but I am looking for yield (Diversified RIF) while retaining oil exposure. Figuring out risk/reward here.

Thanks!

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: What percent does Ala own in the mountain valley pipeline in the us. Is this delay a partial reason why the stock is down. What is your view of the stock at these prices?

Q: Peter; How big a deal is the announcement this am re dry wells- big sell off - would you add to a position? Thanks. Rod

Q: The only energy holding I have currently is SU at 5% of my total portfolio. Given conflicting economic predictions for the next 12-18 months, would you suggest I increase my energy holdings or stand pat? If increase, by what % and could you provide 2 or 3 names with some growth and dividends >2%? Thank you.

Q: Hi guys...great service. Any thoughts on this company? more upside? balance sheet looks quite solid. Step energy.

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.