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A Canadian Dividend Stock Is Leaving Canada — What Algonquin Power's US Move Means for Your RRSP and TFSA

  Published August 9, 2026 Algonquin Power's move to Delaware could change how your dividends are taxed — and whether index funds keep holding the stock at all. If you've owned Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) in your RRSP or TFSA for the dividend, pay attention this week. On Friday, August 7, the Oakville, Ontario-based utility announced it plans to leave Canada — reincorporating as a Delaware company with its head office moving to Chicago. It's not a rumour or a boardroom leak. It came straight from the company's own Q2 2026 earnings release, and CEO Rod West was blunt about the reasoning: more than 80% of Algonquin's operations are now in the United States, with less than 5% left in Canada. The plan is to align the corporate address with where the business actually lives. What's actually changing Here's the plan as Algonquin has laid it out: The company would formally "continue" out of Canada and reincorporate in Delaware,...
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Bankruptcies Surge in Canada Amid Economic Challenges

 

In a year marked by financial turbulence, business insolvencies in Canada have reached unprecedented levels. According to data from the federal Office of the Superintendent of Bankruptcy, 2023 witnessed the highest number of business insolvencies in 36 years of recorded history. The surge was particularly pronounced, with filings rising 35% in the fourth quarter compared to the previous quarter and more than doubling compared to the same period a year ago.

Key Points:

  1. Record High: The total number of businesses filing for insolvency was the highest in 13 years.
  2. Mainly Bankruptcies: The rise was primarily driven by bankruptcies rather than renegotiations of terms.
  3. Hardest-Hit Sectors: Accommodation and food services, retail, and construction experienced the most significant impact.
  4. Financial Challenges: Businesses grappled with rising input costs, wage expenses, and debt servicing costs throughout the pandemic.
  5. Debt Burden: Debt taken on during the pandemic has left some Canadian businesses unviable or in need of debt restructuring.
  6. Government Loans: Business owners who couldn’t repay government pandemic loans (such as CEBA) by the January 19 deadline now face interest charges and monthly payments.

Economic Outlook:

  • Interest Rate Pressure: The additional costs of servicing debts due to higher interest rates may strain businesses already on a precarious edge.
  • Consumer Spending Decline: The weakening economy has also impacted consumer spending, further adding pressure to businesses’ bottom line.
  • Room for Recovery: Some businesses may struggle to manage increased monthly bills, especially if sales remain challenging.

As the Canadian economy navigates these challenges, businesses face a critical juncture. The road to recovery will require resilience, adaptability, and strategic financial management.


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