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Aggressive Income Feature

MDU Resources: One Last Spin, Then a Potential Takeover

By Roger S. Conrad on Jun. 10, 2024
Last year, Aggressive Holding MDU Resources (NYSE: MDU) spun off its construction materials unit as Knife River (NYSE: KNF). Since then, the shares of KNF that MDU investors received per a 1-for-4 ratio have appreciated by roughly 75 percent. Now MDU is spinning out its larger construction services business as Everus, in a deal expected “in late 2024.” The unit reported all-time record order backlog in Q1. And with growth opportunities including data center development and industrial reshoring, its launch promises to attract even more interest.

AT&T Inc: “Showing” In the US Telecom A Winner for Investors

By Roger S. Conrad on May. 9, 2024
When a stock sells for just 7.7 times expected next 12 months earnings, it’s clearly unloved by investors. And that’s clearly the case for America’s number 3 telecom AT&T Inc (NYSE: T), after returning less than 3 percent a year over the past decade. There are numerous reasons for AT&T’s underperformance. But the biggest was US government rejection of its proposed merger with T-Mobile US (NSDQ: TMUS), which led to a disastrous, debt-expanding foray into the entertainment business. And the company has dealt with the fallout ever since, including a first-ever -46.6 percent dividend cut as part of the Warner Brothers (NSDQ: WBD) spinoff in April 2022.

EverSource Energy: Blown By Offshore Wind But Still on Course

By Roger S. Conrad on Apr. 3, 2024
Earlier this year, what promised to be an Atlantic Coast offshore wind boom seemed to go bust. Lead developer Orsted A/S (Denmark: ORSTED, OTC: DNNGY) ousted upper management and wrote off $6 billion in shelved US projects, citing development cost spikes and uneconomic contracts. And its 50 percent partner EverSource Energy’s (NYSE: ES) felt its pain, taking a $5.58 per share impairment charge against Q4 earnings. EverSource’s plan all along has been to sell its ownership of the offshore projects to focus on linking transmission infrastructure. The writedown reflected the diminished value of those assets. But it now appears the demise of US offshore wind was indeed greatly exaggerated.

Algonquin: Gaining Strength as Big Moves Near

By Roger S. Conrad on Mar. 11, 2024

It’s fair to say that Algonquin Power & Utilities (TSX: AQN, NYSE: AQN) has been a problematic recommendation the past few years. Aggressive expansion boosted profits for years, then suddenly hit a brick wall of rising borrowing costs. And Kentucky regulators broke up the acquisition of American Electric Power’s (NYSE: AEP) operations in that state. But after boosting Q4 earnings and EBITDA by 14 and 13 percent, respectively, Algonquin’s core business is strengthening again. And the long awaited sale of non-utility assets may happen as soon as mid-year—lifting the long-lagging share price with massive debt reduction and stock buybacks. Operating profit at Algonquin’s regulated utilities in 2023 increased by 10.5 percent, thanks largely to rate increases paying for system investments. That will be the major driver of growth in 2024 and beyond, along with systematic cost management. During the earnings call, management highlighted $105.8 million pending rate increase requests to be decided this year.

Avangrid Inc: No PNM But Opportunity Abounds

By Roger S. Conrad on Feb. 12, 2024

Aggressive Holding Avangrid Inc (NYSE: AGR) rang in the New Year with two major announcements: The company terminated a merger agreement with New Mexico utility PNM Resources (NYSE: PNM) that dated back to October 2020. And first electricity flowed to the New England power grid from 800-megawatt capacity Vineyard 1, the first commercial scale offshore wind facility in the US. Avangrid also affirmed its 2023 earnings per share guidance range of $2.20 to $2.35. But investor skepticism runs deep the combination utility/contract power producer will maintain long-term earnings growth guidance of 6 to 7 percent, demonstrated by the stock’s current price of just 10.9 times expected next 12 months earnings.

NextEra Energy Partners: The Comeback is Just Beginning

By Roger S. Conrad on Jan. 11, 2024

Last year’s big drop in shares of NextEra Energy Partners (NYSE: NEP) and parent NextEra Energy (NYSE: NEE) was sudden and staggering. Ironically, their recovery should be just as breathtaking. In the October 5 Income Insights “Regarding NextEra,” I stated the case for a comeback. And since then, the parent has returned nearly 30 percent, while Partners has gained almost 50 percent. Here’s why I think that’s just the beginning.

Hannon Armstrong Sustainable: It’s All About the Spread

By Roger S. Conrad on Dec. 11, 2023
The first time I added shares of Hannon Armstrong Sustainable Infrastructure (NYSE: HASI) to the Aggressive Holdings, we cashed out with a return of about 300 percent. My attempt at a reprise has so far been somewhat less successful. Hannon has met management’s guidance for 10-13 percent annual distributable earnings growth, as well as target yearly 5 to 8 percent dividend increases. The dividend itself is 13 percent higher than when we entered in early 2022, with another boost ahead for February.

Atlantica Sustainable: The 10 Percent Yield is Safer than it Looks

By Roger S. Conrad on Nov. 13, 2023

Shares of Aggressive Holding Atlantic Sustainable Infrastructure Plc (NSDQ: AY) have lost almost one-third of their value this year. That’s pushed the dividend yield well north of 10 percent, a level last seen in early 2016. That’s when the bankruptcy of then-parent Abengoa SA threatened numerous company projects with potential cross-defaults. That forced Atlantica to hold in cash by suspending its dividend for six months. And it wasn’t until June 2021 that the payout was fully restored to the pre-suspension rate.

AES Corp: Battered and Cheap but Still Solid

By Roger S. Conrad on Oct. 9, 2023

Aggressive Holding AES Corp’s (NYSE: AES) dividend yield is higher than its P/E multiple. That’s after a -54 percent year-to-date decline in the stock, most of it coming the last couple months as renewable energy and dividend stocks skidded across the board.

Clearway Energy: High Yield, Resilient Growth

By Roger S. Conrad on Sep. 11, 2023

The Inflation Reduction Act’s hundreds of billions of dollars of tax credits are the law of the land. But you wouldn’t know that from the sorry performance of renewable energy stocks. That includes Aggressive Holding Clearway Energy (NYSE: CWEN), which has lost nearly one-quarter of its value so far in 2023.



Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b