1 incredible TSX dividend stock to buy while it’s down 55%

When a TSX dividend stocks are falling hard, you want to know if the market just offered you a deal or a warning label. A good name for ‘buy while it stands’ continues to pay you to wait, and own assets that people still need during times of economic growth. It also shows a credible plan to protect the dividend, repair the balance sheet and get cash flow growing again. Price drops feel terrible, but they can create the best entry point if the company remains intact and the fear seems greater than the facts.

AQN

Algonquin Power and Utilities (TSX:AQN) falls into that ‘essential’ category and operates regulated electricity, gas and water utilities, plus renewable energy sources. Think of it as a mix of stable infrastructure based on a stable interest rate and generation with a long lifespan. That mix can produce predictable cash flow if management keeps debt under control and regulators continue to approve capital plans.

Algonquin pushed its reset toward a simpler story. A new Chief Operating Officer was appointed in early January 2026, signaling a sharper operational focus. It also kept the dividend steady at $0.37 after a big cut in 2024, and that choice signaled to investors that it wanted stability rather than bravado. The dividend stock is now selling itself as a more disciplined utility that earns trust quarter by quarter.

The share price still reflects the bruises of recent years. Shares are still down about 55% since the dividend drop. Since then, however, things have been slowly but surely recovering. In the past year alone, shares are up 32%! That just proves to investors that patience pays off.

Revenue support

The earnings figures show why dividend stocks attract bargain hunters and why opinions are still divided. In the first quarter of 2025, Algonquin posted adjusted net income of $111.6 million, or $0.14 per share, compared to $0.11 per share a year earlier. That result indicated the cleanup plan could work, even with higher rates and more oversight.

Then, midyear reminded investors that utilities still face bumps. In the second quarter of 2025, adjusted net income fell to $36.2 million, and adjusted earnings per share (EPS) fell to $0.04, compared to $0.06 in the prior year quarter.

The picture improved again in the third quarter of 2025. Algonquin reported adjusted net income of US$71.7 million and adjusted earnings per share of US$0.09, compared to US$0.08 in the same quarter last year. Investors should pay attention to this beat: Steady regulatory victories can soften the noise created by markets and weather.

In short

Looking ahead, the bull case rests on execution and a calmer balance sheet. If Algonquin continues to reduce complexity, invest where regulators reward it, and avoid unexpected write-offs, it can rebuild credibility. The valuation already reflects skepticism, which could help buyers who tolerate patience. Today, the dividend stock trades at 93 times earnings, so still on the high side, and with a yield of 4%. These numbers don’t guarantee safety, but investors can still earn big incomes, even from $7,000.

COMPANY	RECENT PRICE	NUMBER OF SHARES	ANNUAL DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
D.F.N	$9.28	754	$0.37	$278.98	Monthly	$6,997.12

The risk remains clear, so you should keep your eyes open. Patience often pays off in this sector. Debt and interest costs can still have a negative impact, and weak interest rates can put pressure on yields. Renewables can increase price risk for the trader, and utilities may suffer if storms and outages increase costs. But if you want to buy one TSX dividend stock while it’s down, Algonquin offers a rare mix of essential assets, a reset strategy, and a dividend that now looks more realistic. Buy it for the next decade, not the next headline.