TSE:TA

Transalta Corp (TA.TO)

19.59
+0.12 (0.62%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
238 watching
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

Transalta Corp (TA-T) has recently been navigating the complexities of the utility market, reflecting mixed sentiments from experts. Some see opportunities in its strategic acquisitions and growth prospects, particularly in the context of rising power demand due to data centers, especially in Alberta. However, concerns arise regarding its low dividend yield of approximately 1.6%, and its stock price trading below the issue price after recent financing efforts. Experts note the utility's underperformance can be attributed to broader market trends favoring high-growth AI stocks at the expense of traditional utilities. While there are points for optimism, particularly with expected earnings growth and beneficial market conditions, many advise caution and recommend monitoring pending developments before making any investment decisions.

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Consensus
Cautious
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Valuation
Fair Value
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SELL
Down on the year and has been flat for 9 months. Power prices in Alberta have not done particularly well. A lot of people own it for the yield play but there are a lot of yield plays with growth.
DON'T BUY
Has had a long rocky road. Decent company but is vulnerable to competition in the electricity market in Alberta. Doesn’t see it as a screaming bargain even at this low rate.
COMMENT
Prefers Canadian Utilities (CU-T), which is in similar real estate and similar space with superior management and a better mix of assets. 5.4% yield, which is nice. If he owned, he would consider lightening up during 2011. The more regulated a utility, the slower response to price increases.
BUY
Owns for yield, doesn’t expect a lot of upside. Ha run up due to takeover, which didn’t happen. No big dividend yield increase, but slow and steady. God if you want some yield.
PAST TOP PICK
(Top Pick Nov 17/09, Up 14% total Return) 6.4% 11/18/2019. Solid utility, still owns it.
DON'T BUY
Investors felt dividends had been too high and not sustainable. Did not increase dividends and earnings grew sufficiently to cover it. Probably not dividend investors’ first choice because payout ratio is pretty high and business doesn't have much growth. 5% yield is relatively safe for the moment.
BUY
Good utility. Likes the yield. Reasonably well run. A proxy for bonds for people that want yield in their portfolios.
PAST TOP PICK
(A Top Pick Aug 4/09. Up 9%.) Sold this to get into Emera (EMA-T). (See Top Picks.)
COMMENT
Has been a steady Eddie. Hs preference has been Trans Canada (TRP-) or Enbridge (E#NB-T) because of scale, nature of the assets and the debt structure. These 2 are probably better choices for growth.
PAST TOP PICK
(A Top Pick Aug 4/09. Basically flat excluding dividends.) Focused to the business cycle as opposed to a regulated utility. Rotated out of this into Emera (EMA-T). See Top Picks.
BUY
This is a stock that you like to have as a core stock in portfolios, particularly where you are interested in a steady flow of income. A utility so won't go racing up. Dividend is quite safe.
PAST TOP PICK
(A Top Pick Aug 4/09. No change.) Switch this to Emera (EMA-T). (See Top Picks.
TOP PICK
6.4% 2019 5.95%, slightly less yielding but more traction because of slightly longer term. Good cash generator. Company doing very well. Keep an eye on cap X.
TOP PICK
It has technically been a bit of a disaster for a while. This is a company that shows itself willing to hang in on the dividend. Biggest risk is the Canadian Economy.
BUY
Not a core holding. Good dividend, but no likely they can increase it a lot. Would not expect to get a lot out of it. 8 or 9% guaranteed just based on their rate base.
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