Should You Buy Algonquin Power Stock at Under $10?

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This year’s stock trading experiences more volatility than what was seen in 2024. Nonetheless, amid the economic instability triggered by the tariff dispute initiated by the United States, the Toronto Stock Exchange (TSX) shows impressive strength. By May 16, 2025, ten out of eleven main sectors have achieved gains. A robust surge over the past month suggests that investor confidence has also been restored.

There are plenty of

buying opportunities

including affordable options that surpass expectations

dividend stocks

One moniker that’s difficult to overlook today is

Algonquin Power & Utilities

(

TSX:AQN

This utility stock is trading at $7.81 per share and has increased by 23.97% since the start of the year.

In the past 90 days, AQN has seen an increase of +15.29%, largely due to ongoing trade tensions. Additionally, with its price below $10, it offers a substantial 4.59% dividend yield for those seeking income investments. According to market experts, a hold recommendation is advised; however, I wouldn’t rule out the possibility of it climbing towards its 52-week high of $9.19 (+17.71%) in the near future.

Pure-play utility

Algonquin Power & Utilities, valued at $6 billion, is an internationally diversified utility firm offering regulated-rate services including natural gas, water, and electric power generation, transmission, and distribution across North America. The company’s principal operation, Liberty, extends its activities into Bermuda and Chile as well.

The management at Algonquin stated they will consistently showcase their “Think Globally, Act Locally” approach to business. This strategy emphasizes expansion, operational efficiency, and environmental responsibility. Given their focus on growth, the company continues with both targeted acquisitions and internal development projects.

In January 2025, Algonquin concluded the sale of its non-core renewable energy operations (including wind and solar assets) as part of its shift towards becoming an exclusively focused utility firm. This transaction provided them with $2.28 billion after deductions, which they plan to utilize for paying down current debts and bolstering their financial position.

In the renewable energy sector, only the hydroelectric power plants within Canada remained with the Hydro Group. This shift for Algonquin involved changes at the helm. On March 7, 2025, Rod West took over as CEO from Chris Huskilson. West envisions substantial potential for Algonquin to strengthen its role as a solely regulated utility company.

Financial turnaround

For the period concluding on March 31, 2025, revenues rose by 7%, reaching $692.4 million from the previous year. The net income stood at $95.4 million as opposed to a net deficit of $56.8 million during Q1 of 2024, marking an impressive improvement of about 268%. West commented, “We saw a productive start to 2025 with significant yearly enhancements across critical economic indicators… These outcomes demonstrate the robustness of our fundamental regulated utility activities, despite adjustments made for certain singular events which provided favorable boosts.”

The Regulated Services Group manages a collection of regulated electricity, water distribution, and wastewater systems along with natural gas utility systems and transmission operations. Their net earnings increased by 43%, reaching $134.6 million compared to the previous year.

Good entry point

Algonquin hasn’t provided substantial capital gains over the past decade. Nonetheless, it has maintained investor satisfaction through consistent quarterly dividend payouts starting from Q1 2012. Shifting emphasis towards regulated utility activities represents a favorable move due to the shift toward a more stable and predictable operational framework. This strategic change has been well received by investors, as reflected in the stock’s performance throughout this year in 2025.

Several market experts suggest that this restructuring has reduced the vulnerability of the power company. Additionally, they predict that future profits will support a distribution rate between 60% to 70%. Unhesitatingly,AQ Nordion’s present stock value appears to be an advantageous buying opportunity.

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Algonquin Power Shares Below $10: Should You Invest or Look Elsewhere?

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Is it wise to put $1,000 into Algonquin Power and Utilities at this moment?

Prior to purchasing shares in Algonquin Power and Utilities, keep this in mind:

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Christopher Liew

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