Atlantic Power (AT)
Market Cap: $326 million
Dividend Yield: 13%
YTD Price Performance: -19%
Atlantic Power (AT) is a small-cap electric utility that sells power to other utilities and corporate customers. Shares have plummeted because a weak power market forced AT to cut its dividend by 65% last year. What’s worse is that even though Atlantic Power refinanced its heavy debt load, the market is still worried that it could cut the dividend again in the not-too-distant future.
Furthermore, some restive shareholders didn’t want the company to buy time by restructuring its debt (a very expensive way to go). Rather, they wanted the company just to sell itself to a bigger operator.
As attractive as the 12.6% yield might be, you can’t count on it — and that’s always a dealbreaker when it comes to dividend stocks.