TransAlta Corporation

NYSE:TAC Stock Report

Market Cap: US$4.1b

TransAlta Dividends and Buybacks

Dividend criteria checks 2/6

TransAlta is a dividend paying company with a current yield of 1.43%. Next payment date is on 1st July, 2026 with an ex-dividend date of 1st June, 2026.

Key information

1.4%

Dividend yield

0.3%

Buyback Yield

Total Shareholder Yield1.7%
Future Dividend Yield1.5%
Dividend Growth-7.4%
Next dividend pay date01 Jul 26
Ex dividend date01 Jun 26
Dividend per sharen/a
Payout ratio-35%

Recent dividend and buyback updates

Recent updates

Seeking Alpha Jun 05

TransAlta: The Colorado Deal Helps, But I'm Still Not Buying

Summary TransAlta Corporation operates and acquires diverse power-generating assets, including renewables and natural gas facilities. TAC benefits from long-term contracts that provide reliable revenue streams, such as 15-year fixed-price agreements with utility customers. I previously rated TAC a Hold due to uncertainty, balancing strong free cash flow and renewables growth against Alberta power price and regulatory risks. Alberta's collapsing power prices and regulatory headwinds remain material concerns for TAC's investment outlook. Read the full article on Seeking Alpha
Seeking Alpha Apr 28

TransAlta: Cratering Alberta Power Prices Offset By Option Premiums

Summary We were exiting our TransAlta position at the time we last wrote about it. The stock has roundtripped back to the same point. The setup seems similar, but there is a much bigger margin of safety today. We tell you why we think the common with covered calls, generating 25% yields, is better than the preferred. Read the full article on Seeking Alpha
Seeking Alpha Feb 21

TransAlta's Growth Story Has Holes And I'm Not Buying It

Summary TransAlta Corporation faces a challenging year with a 20% stock decline, weak grades, and Alberta’s collapsing power prices impacting revenue stability. Despite market headwinds, TransAlta’s efficiency, strategic acquisitions, and expansion in renewable energy projects bolster its long-term growth potential. The company maintains strong free cash flow and liquidity, with significant investments in data centers and renewable energy projects supporting future growth. Given regulatory uncertainties and declining earnings, I rate TransAlta as a hold, pending stabilization of earnings and successful execution of growth initiatives. Read the full article on Seeking Alpha
Seeking Alpha Mar 07

TransAlta: The Transition Must Accelerate

Summary TransAlta is a Canadian power producer, still generating the majority of revenues from fossil fuels but with an important pipeline of renewables plants under development. Its hybrid structure could make it a good investment opportunity in the transition to clean energy, with the thesis supported by the result of my DCF model. However, three major risks are at stake: high dependence on electricity prices, large revenues concentration in Alberta and delays in construction of renewable projects. Read the full article on Seeking Alpha
Seeking Alpha Dec 13

TransAlta: A Major Player, A Good Buy At Below $10.5/Share

Summary TransAlta is a utility company that has been undervalued and has not delivered a high dividend yield. The company has a solid market cap and generates significant free cash flow. TransAlta has plans for significant growth in clean electricity generation and has several high-value projects in the pipeline. Read the full article on Seeking Alpha

Stability and Growth of Payments

Fetching dividends data

Stable Dividend: TAC's dividend payments have been volatile in the past 10 years.

Growing Dividend: TAC's dividend payments have fallen over the past 10 years.


Dividend Yield vs Market

TransAlta Dividend Yield vs Market
How does TAC dividend yield compare to the market?
SegmentDividend Yield
Company (TAC)1.4%
Market Bottom 25% (US)1.4%
Market Top 25% (US)4.3%
Industry Average (Renewable Energy)1.9%
Analyst forecast (TAC) (up to 3 years)1.5%

Notable Dividend: TAC's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: TAC's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (4.28%).


Earnings Payout to Shareholders

Earnings Coverage: TAC is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.5%), TAC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/21 02:27
End of Day Share Price 2026/06/18 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

TransAlta Corporation is covered by 20 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nathan HeywoodATB Cormark
Benjamin PhamBMO Capital Markets Equity Research
Julien Dumoulin-SmithBofA Global Research