TRSWF - TransAlta: Get An 8.4% Yield With 12x Dividend Coverage
TransAlta Corp. (TAC) has struggled ever since Alberta decided to phase out coal use for electricity. In spite of receiving a healthy settlement for those provincial actions, the stock is down 45.75% over the past five years versus a 40.30% up move for the Utilities Select Sector SPDR ETF (XLU).
Data by YCharts
While we have focused our buying efforts on its controlled subsidiary, TransAlta Renewables (TRSWF), recent events have made a rather compelling investment case for a direct investment TransAlta. We make our investment case below.