This High-Yielding Dividend Stock Just Hiked Its Payouts by 6%

Dividend stocks can be great investments because you collect cash flow on a recurring basis. You don’t need to sell your investment in order to receive money. And what’s even better is if you have a dividend stock that routinely raises its payouts. That means that over time, you’re going to be collecting more from your original investment.

One company that recently raised its dividend payments is Algonquin Power & Utilities Corp (TSX:AQN)(NYSE:AQN). On May 12, Algonquin announced that investors would be a getting a 6% bump up to their payouts. Beginning with the July 15 payment, Algonquin shareholders will receive US$0.1808 per share that they own of the company. Previously, the quarterly payment was US$0.171. With the increase, the stock is now yielding 5.13% annually. On a $25,000 investment, that would result in annual dividend income of approximately $1,280.

News of the dividend hike comes at the same time Algonquin released its first-quarter results for 2022. Revenue of US$735.7 million rose 16% year over year. And its adjusted net-earnings per share totaled US$0.21 and rose by 5% from the prior-year period.

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The utility company has been a relatively safe place to invest in this year. Year to date, its shares are down a modest 2%. The S&P 500, by comparison, is down 16% over the same period. Whether you are looking for a solid dividend growth stock or just a stable option amid a volatile stock market, Algonquin could make for an ideal investment to hold in your portfolio today.