CFO Bronicheski buying at high-yielding Algonquin Power

Ted Dixon

Alternative power producer and water distributor Algonquin Power & Utilities Corp. plans to pay a 6-cent-per-share quarterly dividend in October to shareholders of record at the end of September. The expected payment implies an above-average annualized forward dividend yield of about 5.9 per cent.

Investors are often concerned about the sustainability of such high payouts. In determining the likelihood that a dividend can be maintained or eventually boosted, investors generally need to assess future sources and uses of cash at a firm. In addition to fundamental analysis, it can be helpful to look at what insiders are doing.

At Algonquin, we note that CFO David Bronicheski has bought 33,000 shares in the public market at an average price of $4.07 this month. That should serve as an encouraging sign given a CFO’s familiarity with cash flow trends and requirements in a typical organization.

Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. For more background on insider reporting in Canada, visit the FAQ section at www.inkresearch.com. Securities referenced in this profile may have already appeared in recent reports distributed to INK subscribers. INK staff may also hold a position in profiled securities.