This renewables leader cuts your risk

Article Excerpt

This month, we’re adding a new buy for our Canadian Wealth Advisor subscribers. TransAlta Renewables supports its high dividend for investors by selling wind power under long-term guaranteed contracts. That includes electricity sales to its top-quality parent, TransAlta Corp. The company further cuts risk for investors by operating in safe jurisdictions. TRANSALTA RENEWABLES, $14.59, is a buy. The company (Toronto symbol RNW; Shares outstanding: 265.9 million; Market cap: $3.9 billion; TSI Rating: Average; Dividend yield: 6.4%; www.transaltarenewables.com), is one of the largest generators of wind power in Canada. TransAlta Corp. (symbol TA on Toronto) holds 64% of this alternative energy provider. All together, TransAlta Renewables owns 23 wind farms, 13 hydroelectric facilities, one natural gas generation plant, one solar farm and one natural gas pipeline. Those facilities are in Canada, the U.S. and Australia; they create a total of 2,555 megawatts of generating capacity. In the quarter ended March 31, 2020, the company’s revenue fell 13.4%, to $110.0 million from $127.0 million a year earlier. Cash flow per…

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