Algonquin Power & Utilities Corp. Declares First Quarter 2025 Common and Preferred Share Dividends
Algonquin Power & Utilities Corp. has announced that its Board of Directors has approved and declared the first quarter 2025 dividends for both common and preferred shares. This declaration is in line with the company’s commitment to providing consistent returns to its shareholders while maintaining financial stability and growth in the renewable energy and utility sectors. The company has specified the payable dates, record dates, and the applicable amounts for both U.S. and Canadian dollar recipients.
Common Share Dividend Declaration
AQN has declared a dividend of US$0.0650 per common share, which is scheduled to be paid on April 15, 2025, to all shareholders of record as of March 31, 2025. This dividend covers the period from January 1, 2025, to March 31, 2025. For shareholders who wish to receive their dividend in Canadian dollars, the equivalent amount has been determined as C$0.0934 per common share. This conversion is based on the Bank of Canada daily average exchange rate on the day before the declaration date.
Shareholders who are registered directly with the company can elect to receive their payments in Canadian dollars, while beneficial shareholders (those who hold common shares through a financial intermediary) may need to make their currency election through their respective financial institutions. If no election is made, the dividends will be paid in U.S. dollars by default, though financial intermediaries may convert these payments to Canadian dollars at their own exchange rates.
Preferred Share Dividends
Alongside the common share dividends, AQN has also declared dividends for its preferred shares, Series A and Series D:
- Series A Preferred Share Dividend: Holders of Series A preferred shares will receive a cash dividend of C$0.41100 per share, payable on March 31, 2025. The record date for this dividend is March 14, 2025, covering the period from December 31, 2024, to, but excluding, March 31, 2025.
- Series D Preferred Share Dividend: Holders of Series D preferred shares will receive a cash dividend of C$0.42831 per share, also payable on March 31, 2025, to shareholders of record as of March 14, 2025. This dividend also pertains to the period from December 31, 2024, to, but excluding, March 31, 2025.
All of the above-mentioned dividends will be paid exclusively in cash, reinforcing AQN’s approach to maintaining a reliable income stream for its investors.
Suspension of Dividend Reinvestment Plan (DRIP)
AQN had previously suspended its Dividend Reinvestment Plan (DRIP) for common shares, effective March 16, 2023. This program, which allows shareholders to reinvest their cash dividends into additional shares, remains on hold. However, if AQN decides to reinstate the DRIP in the future, shareholders who were previously enrolled and continue to hold shares will be automatically re-enrolled in the program unless they opt out. The company has not provided a timeline for when or if the DRIP will resume but remains open to revisiting this decision in response to market conditions and shareholder interest.
Currency Options for Dividend Payments
For shareholders residing in Canada and the United States, AQN offers the flexibility to choose between receiving their dividends in U.S. dollars or Canadian dollars. The process for making this selection varies depending on whether the shareholder is a registered or beneficial holder:
- Registered Shareholders: Those who directly hold their shares with AQN will automatically receive their dividends in their country of residence’s currency. However, they can request to change their payment currency by contacting TSX Trust Company at 1-800-387-0825 before the dividend record date.
- Beneficial Shareholders: Those who hold their shares through a broker or financial institution should contact their intermediary to elect their preferred currency. If no preference is specified, dividends will be issued in U.S. dollars, but brokers may choose to convert them into Canadian dollars before distribution.
Tax Treatment of Dividends
Under the Income Tax Act (Canada) and corresponding provincial regulations, AQN has confirmed that the declared dividends for common shares, Series A preferred shares, and Series D preferred shares qualify as eligible dividends. This classification provides favorable tax treatment for Canadian residents by allowing them to benefit from the enhanced dividend tax credit, reducing the overall tax burden on these distributions.
Company Overview and Market Performance
Algonquin Power & Utilities Corp. is a leading renewable energy and regulated utility company with a growing portfolio of sustainable energy solutions. It owns and operates renewable and clean energy generation facilities, as well as regulated water, natural gas, and electricity distribution utilities across North America. The company’s ongoing investment in green energy initiatives and expansion in regulated utility services positions it as a key player in the transition toward a low-carbon future.
AQN’s financial strategy focuses on maintaining a strong dividend policy, while also investing in new infrastructure and innovative energy technologies. The declared dividends reflect the company’s ability to generate consistent earnings and support long-term growth, even amid fluctuating market conditions.
Investor Outlook and Future Prospects
AQN has consistently demonstrated its commitment to providing shareholder value through dividends and strategic growth. Looking ahead, the company’s expansion into renewable energy projects, grid modernization, and sustainable infrastructure will likely strengthen its market position. Additionally, ongoing policy support from governments for clean energy initiatives and carbon reduction targets presents an opportunity for AQN to capitalize on emerging trends in the energy sector.
As economic conditions and interest rates continue to evolve, investors will be closely watching AQN’s financial health, debt management, and earnings performance. The company’s ability to maintain stable cash flows and sustain its dividend payouts will be a key factor in its long-term investment appeal.
