BEP vs. AQN - Stocktrades Canada

Hey, over time, I’ve accidentally over-indexed in Energy and renewables (at least that’s what I think). I’m debating whether I should hold BEP or AQN. I’m going to sell my position in IPL now that I’m almost at break even after a long year of holding, and likely consolidate my position in either BEP or AQN into the company I choose to hold.

AQN seems like the better option with a higher yield and currently trading low. Wanted to gut check that and get your feedback. Alternatively, I could double down on XBC.

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Asked on March 4, 2021 3:22 am

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Hey there,

Well - there are two ways to look at it. I'd consider AQN to be the more stable as it has both a traditional utility base + a growing renewable asset base. It is not a pureplay renewable. Unlike BEP which is a pureplay renewable energy company. So if you are looking for more stability, then I'd say AQN is the better option. If you want something with more growth, then BEP is likely to deliver higher growth rates. IN terms of dividend, both have a strong history of dividend growth but as you mentioned, AQN's yield is much higher which does set them apart.

In the end, it really depends on what strategy best fits your tolerance and portfolio.

In terms of XBC - while it is lumped into the 'renewable' space, it is not directly comparable to these two. So you can hold them interdependently. Obviously, MUCH higher risk profile associated with XBC. AQN and BEP can be held as 'foundational' stocks, whereas XBC is certainly more speculative.

Mat

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Posted by Mathieu Litalien

Answered on March 4, 2021 6:49 am

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