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Algonquin Power Is The Only Water Utility I Own
Sep. 26, 2022 6:47 AM ET
Summary
- After supporting the industry since the late 1990s, I have done an about-face and currently avoid the water utility segment except as part of a larger utility.
- Negative water trends include lack of affordability, huge investment needs, water as a human right, and Flint-like financial risks.
- Algonquin Power has ~20% of its regulated utility assets and ~10% of its corporate assets invested in water, providing exposure to water opportunities without putting the entire company at risk.
- I am not convinced pure water utility investors are receiving adequate compensation for the risks being taken.
i've been eyeballing whr too. i've wanted a piece of them for years -- since they bought maytag - taking out a big competitorTrying to find some good stocks on sale with the market drop. There are a few good ones out there, but one that caught my eye was Whirlpool (WHR). They had a pretty bad quarter, and the stock took a dump. It may well take them 3-4 quarters to get back fully on track. But this is a good, strong company so they should be just fine long term. Might be a good opportunity to get in on a good company for cheap. They lowered forward guidance to EPS of $19, and the dividend is $7 so it is fairly well covered. At current prices, the dividend yield is around 5.3%. I haven't pulled the trigger yet, but if it dips down below $120 per share (currently at $131, was as low as $125 yesterday) I probably grab some.
QUANTUMONLINE.COM SECURITY DESCRIPTION: Southern Company Series 2020A 4.95% Junior Subordinated Notes due January 30, 2080 issued in $25 denominations, redeemable at the issuer's option on or after 01/30/2025 at $25 per note plus accrued and unpaid interest, and maturing 01/30/2080. Interest distributions of 4.95% per annum ($1.2375 per annum or $0.309375 per quarter) will be paid quarterly on 1/30, 4/30, 7/30 & 10/30 to holders of record on the record date that will be the business day immediately prior to the payment date if the Notes are in book-entry form or on the 15th calendar day prior to the payment date if the Notes are not in book-entry form (NOTE: the ex-dividend date is one business day prior to the record date). The issuer may defer interest payments on the Junior Subordinated Notes on one or more occasions for up to 40 consecutive quarterly periods. Deferred interest payments will accrue additional interest (see prospectus for further information).This security is possibly subject to an early call before 01/30/2025 at 101% of their principal amount plus accrued and unpaid interest within 90 days of a tax event; before 01/30/2025 at 102% of their principal amount plus accrued and unpaid interest within 90 days of the occurrence of a rating agency event (see prospectus for further information). Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. This security was rated as Baa3 by Moody’s and BBB by S&P at the date of its IPO. The Notes are unsecured, junior subordinated obligations of the company and are unsecured, subordinated obligations of the company and will rank junior to the company's senior debt, junior to unsecured, subordinated indebtedness of the company and will rank equally with all existing and future unsecured, junior subordinated of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below. |
Stock Exchange | Cpn Rate Ann Amt | LiqPref CallPrice | Call Date Matur Date | Moodys/S&P Dated | Distribution Dates | 15% Tax Rate |
---|---|---|---|---|---|---|
4.95% $1.2375 | $25.00 $25.00 | 1/30/2025 1/30/2080 | Baa3 BBB- 8/02/2022 | No |
i cant stop buying SOJD. the parent company, southern company, raises it's dividend every year since forever. SOJD are so-called baby bonds, with a fixed interest payment every quarter
as i understand it, these baby bonds rank behind other debt, but in front of dividends to common stock holders
I just own SO. I have it at a $53 cost basis, so I am up 20% on share price and have a yield on cost of a shade over 5%. Nice reliable dividend on that one. |
just bought 5 year capital one cd at fidelity -- 4.9 percent, call protected, fdic insured. this is the highest interest rate yet. i watch it daily
the credit card companies may be signaling trouble. they are consistently the highest rate on cd. amex, cap one, discover all offering above market
i see recession and rate cuts within a year. the (communist) economy of stagnation and corruption settles into low rates and low/no growth for a few more years. obama economy 2.0So what are you projecting inflation at for the next 5 years? High rates now are a sign the debt markets are imploding. Debt is really the last thing I want to buy.
i see recession and rate cuts within a year. the (communist) economy of stagnation and corruption settles into low rates and low/no growth for a few more years. obama economy 2.0
i can sell the cd's for a profit if i choose (if my forecast plays out)
the imploding debt markets that you mentioned are part of the recession and rate cuts
on inflation -- it will drop dramatically (on paper) as we lap the high inflation of 2022 with 2023 prices that will increase low single digit from 2022
how do you see things playing out?
interesting option. i found several preferred stocks from them. chscm switches to a variable rate in 2024. i need to see if i can find a credit rating on itFor those who like their dividends from preferred stock, I've come across what I think is a reasonable option.
Cenex/Harvest States issues preferred stock with a set call date, with a call price of $25. You can often get them in the low $24.xx range, and they pay a dividend in the upper 6.xx% range depending on where you buy it. Symbol: CHSCM.
Yes, there are several classes. Some have a higher coupon yield, and those are getting a premium over the $25 base.interesting option. i found several preferred stocks from them. chscm switches to a variable rate in 2024. i need to see if i can find a credit rating on it
it's in the link in my previous replyI don't recall the exact formula for the variable rate, but it generally still gives a good yield.
good one. dont get a chance to buy that one very oftenBought some Medtronic on the current weakness. It might deserve to be down a bit, but not this much. Good upside, but it might take a while. Decent yield in the meantime.
es you do!
Its gone nowhere. Do you understand a lottery?
Must be the wrong ticker because that only goes back to Dec 2023.
Well, the spinoff took place on April 1. A 1-for-4 stock assignment...one share of the new company Solventum (SOLV) for every four shares of MMM owned. Gonna take at least a quarter or two for the financials (and dividend amounts) to clear up. I'll probably hang on to all of this until the dust clears, probably this fall after a couple quarterly reports. I'll decide what I want to do with it all at that point.I have a large 3M position, and have been holding it waiting to see what is going to happen withhe health care division spinoff. It was originally supposed to happen late this year, but now I see they are pointing to "first half 2024" for the spinoff. Just getting the leadership team in place for the new company. Gonna be interesting to see what happens with the dividend...if 3M takes the opportunity to lower their dividend.
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