Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

Atlantic Power's Debt Burden Looms Large Over The Stock

Few positive things can be said about Atlantic Power (NYSE:AT). During much of 2012, Atlantic Power repeatedly reassured its shareholders about the safety and sustainability of its dividend before then slashing the dividend 65% on February 28, 2013. Atlantic Power also vastly understated the concentrated nature of its distributable cash flow. In addition, soon after reducing the dividend, Atlantic Power adopted a shareholder rights plan, also known as a 'poison pill', which is widely seen as a defensive tactic to deter a potential takeover. The market has not reacted kindly to these events, with Atlantic Power's stock down a massive 66% YTD. However, Atlantic Power still has several major downside risks, mostly associated with its large amount of...

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