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Algonquin Power & Utilities Corp (AQN)

  • Last Updated:
  • Apr 22nd, 2022 8:29 am
Sr. Member
Dec 26, 2019
679 posts
1144 upvotes
I just picked up some for my dividend growth portfolio for a long term hold. I assume they’ll continue to hire dividends at 7%+ / year for the foreseeable future.
Deal Addict
Feb 4, 2003
3262 posts
1562 upvotes
10% dividend increase

just notice this in the press release,

The quarterly dividends payable on common shares are declared in U.S. dollars. Beneficial shareholders (those who hold common shares through a financial intermediary) who are resident in Canada or the United States may request to receive their dividends in either U.S. dollars or the Canadian dollar equivalent by contacting the financial intermediary with whom the common shares are held. Unless the Canadian dollar equivalent is requested, shareholders will receive dividends in U.S. dollars, which, as is often the case, the financial intermediary may convert to Canadian dollars.

Could this explain why some are getting a different AQN drip? I gotta call my brokerage and make sure i'm getting the AQN drip in CND, so they aren't the one converting?
[OP]
Deal Addict
Feb 26, 2017
2524 posts
3552 upvotes
zzricezz wrote: 10% dividend increase

just notice this in the press release,

The quarterly dividends payable on common shares are declared in U.S. dollars. Beneficial shareholders (those who hold common shares through a financial intermediary) who are resident in Canada or the United States may request to receive their dividends in either U.S. dollars or the Canadian dollar equivalent by contacting the financial intermediary with whom the common shares are held. Unless the Canadian dollar equivalent is requested, shareholders will receive dividends in U.S. dollars, which, as is often the case, the financial intermediary may convert to Canadian dollars.

Could this explain why some are getting a different AQN drip? I gotta call my brokerage and make sure i'm getting the AQN drip in CND, so they aren't the one converting?
Call your broker.

Unless something has changed I think aqn is better to hold in a US account. Let us know if they will give a dividend in CDN without converting.
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Aug 22, 2008
1401 posts
121 upvotes
Toronto
Anyone want to interpret their earnings?
Deal Addict
Feb 4, 2003
3262 posts
1562 upvotes
sheepe wrote: Anyone want to interpret their earnings?
looks like they missed estimate by 1c, expected 21c eps, posted 20c eps
Newbie
Oct 28, 2008
71 posts
17 upvotes
Toronto
What is the reason AQN went down and stay low ? All other dividend paying are higher now...This is the buying oppertunity ?
Deal Fanatic
Aug 17, 2008
8041 posts
8643 upvotes
hat1811 wrote: What is the reason AQN went down and stay low ? All other dividend paying are higher now...This is the buying oppertunity ?
AQN is more closely associated with Renewable power generators IMO and is performing as such.

https://stockcharts.com/freecharts/perf ... 0&O=011000

Is it a Buy? DK.

Update

Good timing for your question. In today's Globe;

Wednesday’s analyst upgrades and downgrades
PUBLISHED MAY 19, 2021
UPDATED 3 HOURS AGO

https://www.theglobeandmail.com/investi ... rades-159/

Seeing the near-term growth outlook largely priced into its shares, Mr. Baydoun downgraded Algonquin Power & Utilities Corp. (AQN-T, AQN-N) to “hold” from “buy,” awaiting a “better entry point or further strategic developments before accumulating the shares.”
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Deal Expert
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Mar 1, 2006
16099 posts
479 upvotes
Chance7652 wrote: Call your broker.

Unless something has changed I think aqn is better to hold in a US account. Let us know if they will give a dividend in CDN without converting.
Why do you feel that it is better to hold in a US account?
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[OP]
Deal Addict
Feb 26, 2017
2524 posts
3552 upvotes
JayTee1 wrote: Why do you feel that it is better to hold in a US account?
Its dividend is paid in USD so if you hold it in your Canadian account you get hit with the conversion from USD>CDN every time you get a dividend. This is probably 1.5-2.5% with most brokerages. I tend to buy AQN in my Canadian account and then Journal to my USD account.
Deal Fanatic
User avatar
Dec 3, 2004
6654 posts
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Edmonton
I loaded up on this a few days ago. I think it's a decent entry given the current climate. Could drop a bit more but I also am betting on a push for renewables again given the whole "bitcoin" and "clean energy" debate. It's all about optics.
Sr. Member
Nov 28, 2016
737 posts
892 upvotes
Chance7652 wrote: Its dividend is paid in USD so if you hold it in your Canadian account you get hit with the conversion from USD>CDN every time you get a dividend. This is probably 1.5-2.5% with most brokerages. I tend to buy AQN in my Canadian account and then Journal to my USD account.
I am holding it in my Questrade account which has been set to settle currency in whatever it comes in as (so USD div stay as USD). Wondering if it will get converted to CAD if I hold AQN.TO.
[OP]
Deal Addict
Feb 26, 2017
2524 posts
3552 upvotes
devmaster8 wrote: I am holding it in my Questrade account which has been set to settle currency in whatever it comes in as (so USD div stay as USD). Wondering if it will get converted to CAD if I hold AQN.TO.
I'd just look at the last dividend and see if it matches what you should have got.
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Oct 14, 2001
1727 posts
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GMA
devmaster8 wrote: I am holding it in my Questrade account which has been set to settle currency in whatever it comes in as (so USD div stay as USD). Wondering if it will get converted to CAD if I hold AQN.TO.
It will settle in the currency in which the security is transacted at so your if you hold AQN.TO, the div is paid to Questrade in USD but what you'll see paid in your account will be paid in CAD. Questrade is handling the conversion and of course, they're charging you for it.
Newbie
Oct 9, 2007
60 posts
6 upvotes
Chance7652 wrote: Its dividend is paid in USD so if you hold it in your Canadian account you get hit with the conversion from USD>CDN every time you get a dividend. This is probably 1.5-2.5% with most brokerages. I tend to buy AQN in my Canadian account and then Journal to my USD account.
When I checked, they said that the divident gets paid in USD and get converted to CAD at the market rate that time. No FX conversion charges.
Deal Addict
Feb 4, 2003
3262 posts
1562 upvotes
chickeni wrote: When I checked, they said that the divident gets paid in USD and get converted to CAD at the market rate that time. No FX conversion charges.
As per AQN, it depends on your brokerage, here is the email i gotten back from them on this topic.
Algonquin declares and pays a USD dividend.

Registered Shareholders (those who have registered their shares of AQN with our Transfer Agent, AST) can request to have their dividend paid in CAD at the Bank of Canada exchange rate that we use in our common share dividend declaration press release.

Beneficial owners (shareholders that hold their shares via a bank/broker) are unfortunately at the discretion of the bank’s USD to CAD exchange rate, which does tend to be less favourable. If you hold your shares of AQN in a CAD account, it’s likely that your broker is automatically converting the USD-paid dividend into CAD at their exchange rate. If you opt to hold your AQN shares in a USD account, then you will receive the USD denominated dividend that Algonquin declares and pays.
Sr. Member
Nov 28, 2016
737 posts
892 upvotes
I journaled my AQN.TO over to USD version after speaking with QT agent who confirmed that AQN.TO will autoconvert the div to CAD.
Member
Oct 22, 2017
215 posts
301 upvotes
If you journal to the US side and get paid the dividend in USD, would this impact the dividend tax credit in any way?
Member
Jan 9, 2017
422 posts
605 upvotes
wa88gta wrote: If you journal to the US side and get paid the dividend in USD, would this impact the dividend tax credit in any way?
It will not. Still Canadian eligible dividends.
Deal Addict
Feb 4, 2003
3262 posts
1562 upvotes
If you do plan on selling do you journal it back to CND first? else it gets pretty complicated with exchange rate if you bought in CND and then sold in US.

Since I'm dripping the shares, I think it an even harder to keep track of ACB.
Newbie
Nov 13, 2006
96 posts
32 upvotes
Pay date is July 15 and Ex date is June 29. I bought some in May. But I haven't got it in my RBC DI account today, July 16. Does anyone get the same problem? Is this caused by that they pay dividend in $USD? Thanks.

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