What started as a turned-down offer from Ontario Hydro (now known as Hydro One) decades ago has become an investment that generates between $20,000 and $45,000 in annual dividends.
During Magnetawan’s May 6 meeting, Mayor Sam Dunnett reflected on the municipality’s long-standing equity stake in Lakeland Power.
It has grown into one of the municipality’s most reliable financial assets, now valued at more than $500,000.
Investment pays dividends
“When that first started up, Ontario Hydro was going around buying up small utilities. They said it’d be $125,000. And I said, ‘That wouldn’t even buy us a truck. So why would I want to settle for that?’” said Dunnett.
Instead, Dunnett said he brought a proposal to council to join Lakeland Power as a shareholder. Council approved it.
“Today, our equity in that is over $500,000. And we do get a dividend on a yearly basis,” said Dunnett.
The investment hasn’t been without turbulence.
Lakeland Power ran into significant operational problems in 2025, which required millions in repairs and temporarily redirected funds away from shareholder dividends.
“Rather than go to the dividend, they decided that they needed to do this — and with the board’s approval, that’s what they did. So our equity in that is quite high,” said Dunnett.
Dunnett was quick to acknowledge Magnetawan’s modest place at the Lakeland Power table.
“I used to compare Magnetawan to the sneeze bar as to what size of the bus we bring,” he said. “But we are pretty proud of the $500,000, a little over $500,000 equity that we have in Lakeland Power.”
In strong years, according to Dunnett, annual dividends have reached as high as $45,000. Typical years land between $20,000 and $25,000.
“That goes into community improvement. We use that for stuff around the municipalities and out there,” said Dunnett.
“So it’s been a good investment.”
