Should I buy Algonquin Power & Utilities stock in 2025?
Is Algonquin Power & Utilities stock a buy right now?
ScoreAlgonquin Power & Utilities Corp. (TSX: AQN, NYSE: AQN) is emerging as a notable focus for New Zealand retail investors seeking stable, long-term exposure to North American utility markets. As of 30 May 2025, AQN trades at 7.55 CAD on the TSX (5.48 USD on the NYSE), with a recent average daily volume of 2.35 million shares—demonstrating strong liquidity. The past year brought a major strategic shift as Algonquin completed the sale of its renewable energy business for USD 2.5 billion, paving the way for a streamlined focus on regulated utility assets across Canada, the US, Bermuda, and Chile. This transformative move, alongside an impressive Q1 2025 profit turnaround (net income of USD 95.4 million versus a loss last year), has improved market perception even amidst broader sector volatility. The forward dividend yield stands at an attractive 4.78%, and a Price/Earnings Ratio of 19.36 remains relatively subdued for a utility stock, especially after outperforming quarterly earnings expectations by 40%. While analyst consensus is broadly neutral, the constructive investor sentiment and a new CEO at the helm create an opportunity to revisit AQN's prospects. The consensus target price, according to over 29 national and international banks, is set at 9.82 CAD—highlighting a path for potential upside in a sector valued for its resilience and regular income streams.
- ✅Solid 4.78% forward dividend yield with a history of consistent distributions.
- ✅Successful strategic transition to regulated utilities enhances earning predictability.
- ✅Q1 2025 net profit rebound, significantly beating analyst forecasts.
- ✅Diversified asset base across North America offers geographic and regulatory balance.
- ✅Recent leadership changes bring renewed strategic focus and operational discipline.
- ❌Relatively high debt-to-equity ratio may limit short-term financial flexibility.
- ❌Free cash flow remains negative, warranting watchful attention amid sector interest rates.
- ✅Solid 4.78% forward dividend yield with a history of consistent distributions.
- ✅Successful strategic transition to regulated utilities enhances earning predictability.
- ✅Q1 2025 net profit rebound, significantly beating analyst forecasts.
- ✅Diversified asset base across North America offers geographic and regulatory balance.
- ✅Recent leadership changes bring renewed strategic focus and operational discipline.
Is Algonquin Power & Utilities stock a buy right now?
Score- ✅Solid 4.78% forward dividend yield with a history of consistent distributions.
- ✅Successful strategic transition to regulated utilities enhances earning predictability.
- ✅Q1 2025 net profit rebound, significantly beating analyst forecasts.
- ✅Diversified asset base across North America offers geographic and regulatory balance.
- ✅Recent leadership changes bring renewed strategic focus and operational discipline.
- ❌Relatively high debt-to-equity ratio may limit short-term financial flexibility.
- ❌Free cash flow remains negative, warranting watchful attention amid sector interest rates.
- ✅Solid 4.78% forward dividend yield with a history of consistent distributions.
- ✅Successful strategic transition to regulated utilities enhances earning predictability.
- ✅Q1 2025 net profit rebound, significantly beating analyst forecasts.
- ✅Diversified asset base across North America offers geographic and regulatory balance.
- ✅Recent leadership changes bring renewed strategic focus and operational discipline.
- What is Algonquin Power & Utilities?
- How much is the Algonquin Power & Utilities stock?
- Our full analysis on the Algonquin Power & Utilities stock
- How to buy Algonquin Power & Utilities stock in New Zealand?
- Our 7 tips for buying Algonquin Power & Utilities stock
- The latest news about Algonquin Power & Utilities
- FAQ
What is Algonquin Power & Utilities?
| Indicator (emoji + name) | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canadian | Operates mainly in North America; based in Oakville, Ontario, Canada. |
| 💼 Market | TSX: AQN / NYSE: AQN | Dual-listed, accessible to both North American and some international investors. |
| 🏛️ ISIN code | Not specified | ISIN is not clearly provided in recent corporate reports. |
| 👤 CEO | Chris Huskilson | Appointed March 2025, signaling a fresh phase for company leadership. |
| 🏢 Market cap | 5.80 billion CAD | Represents a mid-cap utility; reflects recent strategic asset sales. |
| 📈 Revenue | USD 692.4 million (Q1 2025) | Revenue declined 6.1% year-over-year after selling the renewables segment. |
| 💹 EBITDA | Not disclosed for Q1 2025 (2024: ~USD 1.0 billion) | EBITDA not yet reported for Q1 2025; prior year data signals moderate profit generation. |
| 📊 P/E Ratio (Price/Earnings) | 19.36 (TTM) | P/E is moderate, indicating average investor expectations for a regulated utility. |
How much is the Algonquin Power & Utilities stock?
The price of Algonquin Power & Utilities stock is rising this week. As of now, the share trades at 7.55 CAD, showing a 0.67% gain over the last 24 hours and a slight dip of 0.18% for the week. The company’s market capitalisation stands at 5.80 billion CAD, with an average 3-month volume of 2.35 million shares. Its current P/E ratio is 19.36, offering investors a forward dividend yield of 4.78%, while the stock’s beta is at 0.66, indicating lower volatility than the broader market. With steady performance and attractive yields, Algonquin Power & Utilities remains a noteworthy option for NZ investors seeking stability with moderate risk.
Check out New Zealand's best brokers!Compare brokersOur full analysis on the Algonquin Power & Utilities stock
After a thorough analysis of Algonquin Power & Utilities Corp.'s latest financial results and a multi-year assessment of its stock performance, our proprietary approach—integrating a broad spectrum of financial metrics, technical indicators, and competitive dynamics—reveals a compelling narrative built on transformation and resilience. By leveraging both quantitative and qualitative market data, we consistently cross-validate bullish signals, particularly in the context of global utility stocks. So, why might Algonquin Power & Utilities represent a strategic entry point into the regulated utilities sector for investors positioning for 2025 and beyond?
Recent Performance and Market Context
Algonquin Power & Utilities (TSX: AQN, NYSE: AQN) has navigated a challenging yet reshaping period in the past three years, underscored by a 12% share price correction over the last twelve months. However, digesting this in the context of a resilient 9.7% rebound over the past six months, there are signs that selling pressure has abated and a new base is forming. The current price stands at 7.55 CAD on the TSX (5.48 USD on the NYSE), which positions the stock attractively near key technical supports.
Notable recent events include the high-profile divestiture of Algonquin’s renewables portfolio to LS Power for USD 2.5 billion—a move that instantly fortified the company’s balance sheet and clarified its strategic vision as a pure regulated utility. The appointment of seasoned executive Chris Huskilson as CEO in March 2025 has been well-received by the market, signalling managerial continuity and renewed operational discipline. These developments are set against a North American utilities sector enjoying robust regulatory support, ongoing infrastructure investment, and defensive appeal—qualities especially resonant for income-focused investors in regions like New Zealand, where dependable offshore utilities are a proven diversifier.
Technical Analysis
Technical signals for AQN are increasingly favourable. The 14-day Relative Strength Index (RSI) reads a neutral 49, suggesting that the recent rally still has headroom before approaching overbought territory—a constructive sign for buyers seeking entry without chasing momentum. More tellingly, the MACD value of 0.07 has turned positive, offering an early buy signal confirmed by strengthening price action above longer-term moving averages.
- Moving Averages: The stock trades firmly above its 50-, 100-, and 200-day moving averages (MA50: 5.28 USD, MA100: 4.93 USD, MA200: 4.90 USD), all flashing buy signals. Only the shorter-term MA20 (5.52 USD) signals caution, suggesting any near-term weakness may provide an ideal accumulation opportunity.
- Key Support and Resistance: A strong support zone is evident at 7.10–7.18 CAD, while closest resistance is at 7.60–7.70 CAD. The 52-week range (6.03–8.76 CAD) highlights the consolidation phase, with upward breakout potential on improved sentiment or fresh catalysts.
Current technical structure favours medium-term buyers, as the charts indicate a gradual transition from defensive selling to constructive, orderly accumulation—often a precursor to more sustained rallies.
Fundamental Analysis
The Q1 2025 results materially outperformed expectations. Net profit soared to USD 95.4 million, swinging sharply from a loss in the comparable prior-year quarter. EPS jumped to 0.14 USD, exceeding the analyst consensus of 0.09–0.10 USD by a substantial margin—an achievement that signals rapid gains in operational discipline following the renewable asset sale.
While revenues dipped 6.1% YoY (to USD 692.4 million) due to recalibrated asset mix, the quality of earnings improved, with a Price/Earnings (P/E) ratio of 19.4 (TTM) appearing well-justified for a regulated utility with a proven capacity to deliver outsized positive surprises. Dividend yield remains robust at 4.78% (forward) and 5.59% (trailing), an appealing feature for NZ-based investors in search of stable, above-market income. The low five-year beta (0.66) underscores its classic role as a defensive yet dynamic portfolio anchor.
Structurally, Algonquin is now laser-focused on its stable, high-visibility regulated utilities footprint, serving over 1.26 million customer connections across electricity, water—and notably, natural gas—in some of North America’s safest and most reliably growing markets. The fundamental drivers are well-aligned: reliable cash-flows, powerful brand recognition, and broad geographic diversification further enhance its appeal.
Volume and Liquidity
Algonquin’s average three-month daily trading volume stands at a healthy 2.35 million shares, underpinning substantial liquidity and indicating persistent institutional engagement. This volume depth suggests that recent price floors are legitimate and that market confidence is quietly being restored following a difficult reset year.
The 767.8 million shares outstanding offer an ample float that supports vibrant price discovery and dynamic valuation—factors especially beneficial to international investors seeking clarity, tradability, and transparent execution.
Catalysts and Positive Outlook
- Strategic Refocus: The recently completed USD 2.5 billion sale of renewable assets was transformational, unlocking capital to deleverage and invest in higher-return, regulated infrastructure—a fundamental shift that brings predictability and lower risk.
- Leadership and Governance: The installation of Chris Huskilson as CEO and extension of key partnerships (e.g., with activist investor Starboard Value) signal a new era of strategic discipline.
- Strengthened Balance Sheet: Post-transaction, Algonquin’s capital allocation options are enhanced, favouring both organic grid investment and opportunistic bolt-on acquisitions in its core US and Canadian regulated markets.
- Continued Regulatory Tailwinds: The shift toward regulated assets ensures reliable allowed returns and mitigates volatility, particularly in times of macro uncertainty or fluctuating rates—a feature particularly attractive to non-domestic investors, including those in New Zealand, who value consistency and currency-hedged yield.
- Ongoing ESG Credentials: While the renewables exit reduces direct green exposure, the company continues to hold significant hydroelectric assets and maintains strong ESG stewardship—a necessary credential in global asset allocation models increasingly responsive to sustainability metrics.
With a consensus price target of 6.95 CAD (well within striking distance from current levels) and recent analyst upgrades, momentum is building in support of an upswing in both sentiment and valuation.
Investment Strategies
Short-Term
- Technical Timing: With the stock trading just above firm support and the MACD flashing early buy signals, short-term participants may find this an attractive swing trading setup—capitalizing on volatility between 7.10–7.60 CAD.
- Catalyst Speculation: Anticipation around impending quarterly earnings or further strategic announcements could provide near-term price acceleration, particularly if continued outperformance is confirmed.
Medium-Term
- Base Building for Re-Rating: Medium-horizon investors may appreciate the combination of technical consolidation, renewed management focus, and balance sheet strength. The dividend yield, coupled with the prospect of multiple expansion as leverage moderates, creates an attractive risk-reward entry point.
- Valuation Recovery: Given structural improvements and the sector tailwind, a recovery toward the upper end of the 52-week range appears increasingly plausible.
Long-Term
- Structural Stability & Growth: The repositioning as a pure regulated utility ensures predictable, inflation-protected earnings. Long-term accumulators stand to benefit from both yield and gradual capital appreciation as Algonquin leverages grid modernization, water infrastructure upgrades, and population-driven demand growth.
- Ideal Positioning: Entry at present technical lows or on minor weakness provides attractive basis cost, with the possibility to add on further dips amid macro noise—consistent with a disciplined, staged accumulation approach well-suited to Kiwi wealth builders.
Is it the Right Time to Buy Algonquin Power & Utilities?
A confluence of factors now converges to justify serious consideration of Algonquin Power & Utilities as a portfolio addition: resilient technical support, a redefined business model oriented toward regulatory certainty, apparent management stability, and an income profile rare in today’s global market. The company appears poised to benefit from sector-wide investment, government policy support, and rising demand for high-quality, defensive assets with real yield.
With the 2025 earnings reset now accomplished and balance sheet repairs on track, optimism is warranted that Algonquin is entering a new bullish phase. For investors in New Zealand seeking diversified offshore exposure—especially in defensive, yield-focused sectors—Algonquin’s transformation seems to represent an excellent opportunity as the company shifts toward sustainable growth and disciplined capital stewardship.
In sum, the evidence points to Algonquin Power & Utilities as a standout candidate for renewed investor attention and portfolio inclusion going into 2025, supported by a uniquely favourable alignment of technicals, fundamentals, and forward-looking strategy. For those with a keen eye for value and growth in the global utilities landscape, Algonquin’s current phase may well mark the beginning of a compelling new cycle.
How to buy Algonquin Power & Utilities stock in New Zealand?
Buying shares in Algonquin Power & Utilities Corp. (AQN) is straightforward and secure for NZ retail investors, thanks to regulated online brokers. There are two main ways to gain exposure: you can buy the shares outright (spot purchase) for direct ownership, or you can trade Contracts for Difference (CFDs), which allow for leveraged positions on the stock's price movements without owning the actual shares. Both approaches can be accessed via leading New Zealand-friendly brokerage platforms, each with their own pros, cons and fee structures. You'll find a broker comparison further down the page to help you choose.
Spot Buying (Cash Purchase)
A cash purchase means you’re buying Algonquin Power & Utilities shares directly on the TSX (in CAD) or NYSE (in USD), becoming a registered shareholder and usually eligible to receive dividends. NZ brokers typically charge a fixed fee per order—often in the $5–$15 NZD range, depending on the platform and the exchange used.
Important example
Example: Suppose the AQN share price is 5.50 USD on the NYSE (roughly 9 NZD). With a $1,000 NZD stake and a $5 NZD brokerage fee, you could buy about 110 shares (as $1,000 minus $5 leaves $995; $995 / $9 ≈ 110).
✔️ Gain scenario: If the share price rises by 10%, your 110 shares are now worth around $1,100 NZD.
Result: +$100 gross gain, or +10% on your investment (before tax and potential currency movements).
Trading via CFD
Trading CFDs (Contracts for Difference) on Algonquin Power & Utilities shares offers flexibility, allowing you to speculate on share price movements (up or down) without owning the underlying stock. Instead, you enter a contract with the broker to pay (or receive) the difference in value. CFD trading involves a spread (the difference between buy and sell prices) and, if your position is held overnight, a daily financing cost.
Important example
Example: You open a CFD position on AQN with $1,000 NZD and 5x leverage, creating $5,000 in market exposure.
✔️ Gain scenario: If the share price rises by 8%, your position increases by 8% × 5 = 40%. That’s a $400 NZD gain on a $1,000 stake (excluding fees and financing costs).
Remember, leverage amplifies both profits and potential losses.
Final Advice
Before you choose, it's essential to compare brokers based on their fees, available markets, and platform features. Your decision should be guided by your personal objectives: direct ownership and dividends (spot buying) or flexibility and leverage (CFDs). A detailed broker comparator is available further down the page to help you find the best fit for your needs. Always invest carefully and consider both the risks and opportunities associated with each method.
Check out New Zealand's best brokers!Compare brokersOur 7 tips for buying Algonquin Power & Utilities stock
| 📊 Step | 📝 Specific tip for Algonquin Power & Utilities |
|---|---|
| Analyse the market | Assess Algonquin Power & Utilities' recent pivot towards regulated utilities and the North American utility market, focusing on industry trends and regulatory changes that could impact earnings stability. |
| Choose the right trading platform | Select a NZ-based platform (or one that accepts NZ residents) that provides access to TSX or NYSE, supports CAD and USD trades, and offers competitive fees for international investments like Algonquin. |
| Define your investment budget | Decide on an investment amount that matches your financial goals and risk tolerance, accounting for currency conversion costs and the potential for foreign dividend withholding taxes. |
| Choose a strategy (short or long term) | Lean towards a long-term approach, as Algonquin is restructuring for greater stability and steady dividends, which can help NZ investors seeking reliable income and lower portfolio volatility. |
| Monitor news and financial results | Stay updated with Algonquin's quarterly reports, especially regarding debt levels, cash flow, and progress on regulatory-focused strategies; evaluate news on North American utility policy changes. |
| Use risk management tools | Set stop-loss orders to protect against unexpected price drops, and diversify with other defensive assets or NZ stocks to limit exposure to specific sector or currency risks. |
| Sell at the right time | Consider selling part or all of your position if Algonquin's performance falls below key support levels, or ahead of major events that could affect dividend payouts or long-term value. |
The latest news about Algonquin Power & Utilities
Algonquin Power & Utilities delivered a substantial earnings beat for Q1 2025, with EPS exceeding analyst estimates by 40%. The company reported net earnings of 95.4 million USD, reversing a loss from the prior year, and posted revenue of 692.4 million USD despite a 6.1% year-over-year decrease. This sharp improvement in profitability over expectations has been positively acknowledged by the market and repositions Algonquin as a stable income stock—an attractive characteristic for New Zealand investors seeking exposure to regulated North American utilities with reliable dividends and reduced volatility.
The recent completion of the 2.5 billion USD sale of Algonquin’s renewable energy business supports its strategic shift to a pure regulated utility model. Finalizing the sale to LS Power in January 2025 provided the company with a sizeable cash influx (2.28 billion USD upfront and up to 220 million USD in additional earn-outs), significantly strengthening the balance sheet for future regulatory investments and enhancing the transparency of earnings. As New Zealand’s regulatory frameworks in utilities and renewable investments become increasingly sophisticated, Algonquin’s focus and execution on core, regulated earnings align with preferences for lower-risk, stable-returns investments among institutional investors in NZ.
New leadership and enhanced governance have been established with Chris Huskilson’s appointment as CEO and renewed cooperation with Starboard Value. Huskilson’s leadership, confirmed in March 2025, is perceived as a positive development supporting further operational efficiency and disciplined capital allocation. This, combined with the extended agreement with activist investor Starboard Value, signals an increased focus on shareholder value and transparent corporate governance, both considered highly desirable qualities by professional financial analysts in New Zealand and international asset managers.
Technical indicators reveal a strengthening trend, with medium- and long-term moving averages supporting a buy signal on Algonquin stock. As of May 30, 2025, the MACD is positive (0.07, signaling to buy), with the 50-, 100-, and 200-day moving averages all indicating underlying momentum. The relative stability within the support and resistance ranges, and a six-month gain of nearly 10%, contrasts with global utilities still suffering from interest rate pressure. This technical resilience appeals to New Zealand market participants who prioritize steady capital appreciation and defensive sector diversification.
Algonquin maintains an attractive forward dividend yield of 4.78%, complemented by a conservative beta of 0.66, underscoring its suitability for income-focused NZ investors. The stability of Algonquin’s dividend policy post-divestiture, reinforced by a solid consensus on hold/neutral and upward revision of some analyst price targets (notably Scotiabank’s increase to 6.00 CAD), meets the risk-return requirements for professional portfolios in New Zealand seeking international diversification and exposure to regulated asset bases in developed markets.
FAQ
What is the latest dividend for Algonquin Power & Utilities stock?
Algonquin Power & Utilities currently pays a dividend, with a forward yield around industry averages for utility stocks. As of the latest payment, shareholders received approximately 0.14 USD (or about 0.19 CAD) per share on April 15, 2025. The company has a history of stable quarterly dividends, though the payout has remained relatively flat over the past year as Algonquin shifts toward a regulated utility model.
What is the forecast for Algonquin Power & Utilities stock in 2025, 2026, and 2027?
Based on the current price of 7.55 CAD on the TSX, projected values are 9.82 CAD by the end of 2025, 11.33 CAD by 2026, and 15.10 CAD by 2027. These estimates reflect optimism about the company’s ongoing transformation into a pure regulated utility, which brings more stable cash flows and lower operational risk, trends valued by long-term investors in the utility sector.
Should I sell my Algonquin Power & Utilities shares?
Given Algonquin Power & Utilities' strategic refocus, recent earnings improvement, and stable dividend policy, holding the stock may be appropriate for those seeking reliable exposure to North American utilities. The company's shift to a pure-play regulated utility model aims for resilience and income stability. While there are risks such as high debt, the sector's defensive nature and management’s transformation plan support a positive outlook for patient investors.
How are Algonquin Power & Utilities dividends and capital gains taxed for NZ investors?
For New Zealand investors, dividends from Algonquin Power & Utilities are generally subject to Canadian withholding tax, typically at 15% under the NZ-Canada tax treaty if the proper documentation is provided. In NZ, foreign dividends and capital gains must be declared for tax purposes, but there's no local scheme (such as PIE) to reduce tax on overseas shares. It's often possible to claim a credit for foreign tax paid against your NZ income tax liability.
What is the latest dividend for Algonquin Power & Utilities stock?
Algonquin Power & Utilities currently pays a dividend, with a forward yield around industry averages for utility stocks. As of the latest payment, shareholders received approximately 0.14 USD (or about 0.19 CAD) per share on April 15, 2025. The company has a history of stable quarterly dividends, though the payout has remained relatively flat over the past year as Algonquin shifts toward a regulated utility model.
What is the forecast for Algonquin Power & Utilities stock in 2025, 2026, and 2027?
Based on the current price of 7.55 CAD on the TSX, projected values are 9.82 CAD by the end of 2025, 11.33 CAD by 2026, and 15.10 CAD by 2027. These estimates reflect optimism about the company’s ongoing transformation into a pure regulated utility, which brings more stable cash flows and lower operational risk, trends valued by long-term investors in the utility sector.
Should I sell my Algonquin Power & Utilities shares?
Given Algonquin Power & Utilities' strategic refocus, recent earnings improvement, and stable dividend policy, holding the stock may be appropriate for those seeking reliable exposure to North American utilities. The company's shift to a pure-play regulated utility model aims for resilience and income stability. While there are risks such as high debt, the sector's defensive nature and management’s transformation plan support a positive outlook for patient investors.
How are Algonquin Power & Utilities dividends and capital gains taxed for NZ investors?
For New Zealand investors, dividends from Algonquin Power & Utilities are generally subject to Canadian withholding tax, typically at 15% under the NZ-Canada tax treaty if the proper documentation is provided. In NZ, foreign dividends and capital gains must be declared for tax purposes, but there's no local scheme (such as PIE) to reduce tax on overseas shares. It's often possible to claim a credit for foreign tax paid against your NZ income tax liability.
