TransAlta Co. (NYSE:TAC) (TSE:TA) announced a quarterly dividend on Monday, December 28th, Wall Street Journal reports. Investors of record on Monday, March 1st will be paid a dividend of 0.035 per share by the utilities provider on Thursday, April 1st. This represents a $0.14 dividend on an annualized basis and a dividend yield of 1.90%. The ex-dividend date of this dividend is Friday, February 26th. This is an increase from TransAlta’s previous quarterly dividend of $0.03.
TransAlta has decreased its dividend by 0.4% over the last three years and has increased its dividend annually for the last 1 consecutive years. TransAlta has a dividend payout ratio of -30.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect TransAlta to earn $0.24 per share next year, which means the company should continue to be able to cover its $0.13 annual dividend with an expected future payout ratio of 54.2%.
Shares of NYSE:TAC opened at $7.36 on Wednesday. The company has a market capitalization of $2.00 billion, a price-to-earnings ratio of 25.38 and a beta of 1.11. The firm’s 50 day simple moving average is $6.90 and its 200 day simple moving average is $6.40. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.15 and a quick ratio of 0.89. TransAlta has a fifty-two week low of $3.63 and a fifty-two week high of $8.50.
Several analysts have commented on the stock. BMO Capital Markets raised their target price on shares of TransAlta from $8.00 to $10.00 and gave the stock a “market perform” rating in a report on Monday, December 7th. CIBC raised their target price on shares of TransAlta from $9.50 to $10.00 and gave the stock a “neutral” rating in a report on Thursday, November 5th. Credit Suisse Group raised their target price on shares of TransAlta from $12.00 to $16.00 and gave the stock an “outperform” rating in a report on Thursday, December 24th. ValuEngine upgraded shares of TransAlta from a “hold” rating to a “buy” rating in a report on Friday, November 6th. Finally, BidaskClub upgraded shares of TransAlta from a “hold” rating to a “buy” rating in a report on Monday. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and seven have assigned a buy rating to the stock. TransAlta presently has an average rating of “Buy” and a consensus price target of $10.46.
TransAlta Company Profile
TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. It operates through Canadian Coal, U.S. Coal, Canadian Gas, Australian Gas, Wind and Solar, Hydro, and Energy Marketing segments. The company generates and markets electricity through various generation fuels, such as coal, natural gas, water, solar, and wind.
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