Transalta Corp (TA.TO)

They cut their dividend by 38% unexpectedly. They want to do M7A to grow. Her preference would be other income producing stocks.

He is somewhat constructive and has been picking away at it down here. Most if not all of the bad news is out of the way down here. It will be a long workout and repair program for the company. Doesn’t believe it is a value trap.

It looks cheap. He has been adding a bit but prefers AGN-T. Rates as sector perform.

You don’t want to run from it here after the surprise dividend cut. It could dip below $13 temporarily. For dividend players you want to accumulate it here. You are going to get a shareholder changeover.

4.6% resets. If you want to play this company, play the common. You have no instituitional support for non-investment grade preferreds.

A lot of their facilities are somewhat dated. The company has always been good about paying the dividend, but the cut is probably a good thing. Thinks it will go sideways from here. The yield is still reasonable. The damage has been done.

With this and most of the major pipelines, the multiple is always going to be high in this type of environment. Also there is a longer term overhang of rising interest rates, which could pull these down. However, he feels the dividend is safe and there is a pretty good runway of infrastructure build-up for a number of these names, not just this one.

Utility, primarily based in Western Canada. New CEO is trying to turn things around to grow more and have a more sustainable dividend. He primarily looks for companies that can grow their dividend and he is concerned how this company is going to do that. Would look for others such as Keyera (KEY-T) or Pembina (PPL-T).

Has always been a problem as they have always under delivered. Used to own their debt last year, but has always stayed away from the stock because their assets always needed a lot more capital than was expected and there was a risk of them cutting their distribution.

(Market Call Minute.) Starting to warm up to this and would be buying it here. 8% yield and the dividend is sustainable.

His company has this as a Sector Perform with a target of $15. Feels the dividend is safe. Owns a little bit of this for some of his clients and has not been selling any. With the correction it has had over the last couple of months, he feels this is a good entry point.

(Market Call Minute.) He would avoid this one right now. There is still a lot of uncertainty as far as where their future goes. He would like to see this resolved before going into it.

Still owns a small position but evaluating this currently. Have had some issues with some of their assets. Have an older fleet of coal generated assets that are in various states of functionality. They are trying to skate through the next couple of years without having any downtime, but if there is downtime, they benefit from their power trading division. The high dividend yield is a red flag.

Stock has been terribly beaten up in the last couple of years. Chart shows a lot of congestion in the $13 range. Offers a really good risk/reward. Very high dividend payout of 139%, which is well supported by its DRIP program.

Still has not been able to get things turned around. Keep paying out too much. Book value keeps on slipping lower and he does not like to see that. Every time he looks at it he regrets recommending it to clients. Hope for the best.