TAC - 10% Yield And 10X Dividend Coverage From TransAlta

Note: All amounts discussed are in Canadian dollars

TransAlta Corp. (TAC) joined the general stock market malaise and dropped precipitously this year. From the February peak the shares were down over 50% at one point, making it the steepest single month decline for the firm.

Data by YCharts

The shares have bounced back but we do think there is an opportunity to make money in this company. We make our investment case below.

The Business

TransAlta has a diversified mix of revenues, with "clean" energy forming a major subset. Over the last 5

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