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TransAlta announces dividend declaration

Published 23/10/2024, 22:48
TAC
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CALGARY - TransAlta Corporation (NYSE: NYSE:TAC), a provider of electric services, declared dividends today, as per their latest SEC filing. The announcement comes directly from the company's principal executive offices located at TransAlta Place, Calgary.

According to the filing, TransAlta has completed the necessary formalities with the United States Securities and Exchange Commission, under the form 6-K, for the month of October. The document, signed by Executive Vice President Finance and Chief Financial Officer Joel Hunter, confirms the company's compliance with the requirements of the Securities Exchange Act of 1934.

The nature of the dividends, including the amount and the payment schedule, was not detailed in the provided excerpt of the filing. Investors and stakeholders are typically keen on such announcements as they can influence the company's stock performance and reflect its financial health.

TransAlta, listed under the Standard Industrial Classification code for Electric Services, operates within the Energy & Transportation sector. The company has a fiscal year ending on December 31, and its business activities are centered around the generation and sale of electricity.

The declaration of dividends is a common practice among publicly traded companies, serving as a way to return value to shareholders. It is a sign of the company's profitability and its board's confidence in the firm's financial stability.

In other recent news, TransAlta Corporation has announced plans to release its third-quarter financial results for 2024 and has scheduled a conference call for stakeholders. During the call, the company's financial and operational performance for the third quarter will be discussed. Details about the exact date and time of the call were not disclosed.

TransAlta has also reported robust Q2 2024 earnings with an adjusted EBITDA of $312 million, free cash flow of $172 million, and net earnings of $56 million. BMO Capital Markets has reiterated an Outperform rating for TransAlta, showing confidence in the company's position and increasingly contracted assets. Additionally, TransAlta has announced the conversion of its Series G and Series H preferred shares and declared its dividend rates for these shares.

InvestingPro Insights

TransAlta's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for an impressive 37 consecutive years, demonstrating a commitment to consistent shareholder value. The current dividend yield stands at 1.73%, with a notable dividend growth of 9.13% over the last twelve months as of Q2 2024.

InvestingPro Tips highlight that TransAlta's management has been aggressively buying back shares, further emphasizing their focus on returning value to shareholders. This strategy, combined with the company's high shareholder yield, suggests a strong alignment between management and investor interests.

Despite facing some headwinds, with analysts anticipating a sales decline in the current year, TransAlta's financial metrics remain robust. The company boasts a low P/E ratio of 7.37, indicating it may be undervalued relative to its earnings. Additionally, TransAlta has demonstrated strong recent performance, with a 48.45% price total return over the past three months and a 59.44% return over six months.

For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for TransAlta, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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