Transalta Corp (TA.TO)

Owns this and considers it a problem child in his portfolio. Has been struggling. Their coal-fired plants out West are facing replacement requirements. They just don’t seem to have a lot going for them. Keeps hoping they will cut a better deal in Alberta to give them a little bit more wiggle room. Dividend of about 7%. There have been times in the past when they have not earned their dividend but continued to pay. Expects this will be the pattern in the future. Getting a little concerned that if we don’t see any improvement in operating levels, at some point in time that dividend could be in danger.

High payout ratio. Management says they will not cut it. May be prudent to cut it so it may not be safe. 8.6% dividend.

(Market Call Minute.) The dog stock of the decade. Doesn’t have any growth. Coal fired power plants.

Most of the utilities fit into his thought that they are yield only and not much growth. Bottom feeding mentality really fits in here because it has been in a downtrend 4 years. Would prefer something like Innergex Renewable Energy (INE-T), which has some growth.

Very mature power electric company. Recently spun out their renewable power portfolio. Good yield of 8.4% which she thinks is safe. Doesn’t see a lot of growth in the dividend.

(Market Call Minute) Dividend is in question.

Spun off their renewables power portfolio. Provides a very attractive yield and she feels the dividend is safe. Doesn’t see a lot of earnings and cash flow growth for the next few years. Sees greater growing increasing cash flow and increases in the distributions/dividends in other investments in that general income category.

Has a decent yield but not much potential for a dividend increase over the next couple of years anyway. There is some potential in 2015 to 2017 to increase the dividends somewhat as contracts come off and they can sell power into the retail market. Spun out a portion of assets into a holding company, which was good, although those were good assets too. What you have left is the holding of the renewable company and a lot of aging assets, mostly coal generation plants in Alberta. Doesn’t expect a lot of upside in the stock price or dividends.

Last time he looked at this one, it was paying out almost all of its cash flow. Market is always concerned that there is going to be a dividend cut. Has some serious issues. Balance sheet needs to be restructured.

(Market Call Minute.) Huge payout ratio. Deteriorating asset quality.

Doesn’t want to own this. Has a big dividend yield but there is no growth going forward. Thinks the dividend is in jeopardy at some point in time. 7.8% dividend yield.

Preferred shares, Series D? Doesn’t find the common stock on this company particularly appealing. Had a nice little rebound lately but the power markets are a bit problematic. Have got a checkered history over the last couple of years. On the Preferred side, it is really an interest rate call. Preferreds got hit like all interest sensitive things but he thinks you can hold it, collect your dividend, and be perfectly fine.

Model $10, -31% differential. It is only trading here because of a yield they can’t afford. He calls it ‘lines of death’ on his blog.

(Market Call Minute.) He is not 100% convinced of the sustainability of the dividend. Have continually disappointed on the fundamentals until recently.

(Market Call Minute) Spinning off renewable power asset to create value that was not there before. Dividend is still questionable.