The original article was posted here in Jan 2024–
In late May 2024, Mr Smith posted that he is dumping Energy Transfer (ET). Around the same time, a second development was occurring that affects a different idea in the 10-holding port. The circumstances are very different. Which is why I decided to post on the issue as a separate thread.
Atlantica Yield Infrastructure (AY), a renewable energy idea, received a buyout offer.
https://seekingalpha.com/news/4110651-atlantica-sustainable-to-be-bought-by-energy-capital-partners-for-22share?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_news|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A1
Energy Capital Partners offer is for $22/sh, and would take AY private. AY was trading around $21/sh when Mr Smith proposed the idea, and has subsequently had two dividend related events - a payout in March 2024, and a second dividend with record date 05/31/24 (Payout is tomorrow).
The deal isn’t final yet. But, if the deal does clear, anyone who followed Mr Smith’s advice will have more cash in their port. A few dividend payouts and a small capital gain in 2024 is certainly not a bad outcome. But, it does mean challenge the notion that the port would provide “safe and reliable” dividends for life.
As I noted in the OP, I own AY shares. I wasn’t dependent on AY’s dividend as an income stream. For me, AY represents a challenge of redeploying capital. Somewhat ironic, but if one is focused on reliable income, a “ready-made” candidate as replacement could be AY’s largest shareholder - Algonquin Power & Utilities (AQN). This is a Canadian based company who, after disposing their renewable assets, returns to its original role - that of being a regulated utility.