TransAlta Corporation (NYSE:TAC) Announces Quarterly Dividend of C$0.07

TransAlta Corporation (NYSE:TAC) (TSE:TA) declared a quarterly dividend on Tuesday, July 28th. Stockholders of record on Tuesday, September 1st will be paid a dividend of 0.07 per share by the utilities provider on Thursday, October 1st. This represents a c) annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Tuesday, September 1st.

TransAlta has increased its dividend by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 2 consecutive years. TransAlta has a payout ratio of 117.6% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect TransAlta to earn $0.37 per share next year, which means the company should continue to be able to cover its $0.20 annual dividend with an expected future payout ratio of 54.1%.

TransAlta Stock Down 2.2%

TAC stock opened at $12.46 on Thursday. The company has a current ratio of 0.76, a quick ratio of 0.70 and a debt-to-equity ratio of 6.61. The company’s 50 day moving average is $13.63 and its 200 day moving average is $13.18. The stock has a market cap of $3.94 billion, a price-to-earnings ratio of -23.08 and a beta of 0.69. TransAlta has a 1-year low of $11.38 and a 1-year high of $17.88.

TransAlta (NYSE:TAC) (TSE:TA) last announced its earnings results on Wednesday, May 6th. The utilities provider reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.03. TransAlta had a negative net margin of 9.46% and a positive return on equity of 9.52%. The business had revenue of $406.19 million during the quarter, compared to analyst estimates of $436.36 million. Sell-side analysts predict that TransAlta will post 0.17 EPS for the current fiscal year.

Institutional Trading of TransAlta

Institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd purchased a new position in shares of TransAlta in the fourth quarter worth about $37,000. EverSource Wealth Advisors LLC boosted its holdings in TransAlta by 37.1% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,000 shares of the utilities provider’s stock valued at $38,000 after acquiring an additional 812 shares during the period. FNY Investment Advisers LLC bought a new position in TransAlta during the 4th quarter worth approximately $50,000. Warren Street Wealth Advisors LLC purchased a new position in TransAlta in the 4th quarter worth approximately $129,000. Finally, Ritter Alpha LP bought a new stake in TransAlta in the fourth quarter valued at approximately $131,000. 59.00% of the stock is currently owned by hedge funds and other institutional investors.

About TransAlta

TransAlta Corporation, originally founded in 1909 as Calgary Power Company Ltd., is a publicly traded energy company specializing in the development, ownership and operation of power generation and transmission assets. Headquartered in Calgary, Alberta, TransAlta has grown from its early hydroelectric roots into a diversified energy provider with a multi-fuel generating fleet.

The company’s core business activities encompass power generation, asset management and energy trading services.