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TransAlta sets dividend rates for preferred shares

Published 03/09/2024, 23:06
TAC
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CALGARY – TransAlta Corporation (NYSE: NYSE:TAC), a provider of electric services, announced today its dividend rates for Series G Preferred Shares and Series H Preferred Shares. The declaration was made in a Form 6-K report filed with the United States Securities and Exchange Commission for the month of September 2024.

The company, headquartered in Calgary, has confirmed the dividend rates pursuant to corporate governance requirements and financial policies. The specifics of the dividend rates, however, were not disclosed in the provided context of the 8K data.

As per the filing, the report was signed by Joel Hunter, Executive Vice President Finance and Chief Financial Officer of TransAlta Corporation. The document indicates the company's compliance with the Securities Exchange Act of 1934 and outlines the procedural aspects of the dividend announcement.

TransAlta Corporation, listed under the electric services industry, is known for its operations in energy generation and transportation. The company's business address is at TransAlta Place, 1400, 1100 - 1st Street S.E., Calgary.

In other recent news, TransAlta Corporation announced a conversion right for holders of its Series G preferred shares, providing shareholders with the option to transition to an alternative series of shares. This is a routine corporate action that aligns with the company's financial instruments.

On the financial front, TransAlta reported positive Q2 2024 results, with an adjusted EBITDA of $312 million, free cash flow of $172 million, and net earnings of $56 million. These robust earnings are bolstered by the completion of its 200 MW wind facilities in Oklahoma, projected to add over $100 million to the annual adjusted EBITDA.

In addition, the company is actively exploring repurposing options for its thermal sites in Alberta and Washington State, alongside its ongoing Heartland Generation transaction. TransAlta has also returned $89 million to shareholders through share repurchases and plans to continue this program.

InvestingPro Insights

TransAlta Corporation (NYSE: TAC) has demonstrated a commitment to shareholder returns, maintaining dividend payments for 37 consecutive years, an indicator of financial stability and management's confidence in the company's cash flow. This aligns with the "InvestingPro Tips" which highlight a high shareholder yield and a valuation that implies a strong free cash flow yield. The company's P/E ratio stands at a modest 6.13, presenting it as trading at a low earnings multiple, potentially making it an attractive option for value investors.

In terms of performance, the company has experienced a notable price increase over the last six months, with a 30.29% total return, which may interest momentum investors. Despite a forecasted sales decline in the current year, analysts remain optimistic about the company's profitability, as noted in the "InvestingPro Tips". For investors seeking more detailed analysis, there are over ten additional "InvestingPro Tips" available, providing a deeper dive into TransAlta's financial health and market position.

From a data perspective, TransAlta's market capitalization is currently $2.59 billion, and with a dividend yield of 2.02%, it continues to reward investors. While the revenue has shown a decrease of 9.35% over the last twelve months as of Q2 2024, the company's gross profit margin remains robust at 47.32%, showcasing the efficiency of its operations.

Investors considering TransAlta Corporation as a potential addition to their portfolio can access further insights and metrics on "InvestingPro" to make an informed decision.

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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