Topic: How To Invest

Dividend Advisor Hotline – Friday, July 14, 2023

Article Excerpt

TRANSALTA RENEWABLES INC., $13.24, Toronto symbol RNW, is now a hold. The company owns 26 wind and solar farms, 11 hydroelectric facilities, eight natural gas generation plants, two solar power facilities, a natural gas pipeline and one battery storage facility. Those projects are in Canada, the U.S. and Australia. TransAlta Corp. (Toronto symbol TA) owns 60.1% of the company. TransAlta Renewables last raised its monthly dividend by 6.8% with the September 2017 payment, from $0.07333 a share to $0.07833. The new annual rate of $0.94 yields a high 7.1%. This week, the company has accepted a takeover offer from parent company TransAlta. Under the terms of the deal, shareholders can opt for either $13.00 a share, or 1.0337 of a TransAlta common share, for each share they hold. TransAlta has capped the cash it will pay at $800 million, as well as the number of shares it will issue (46.4 million, or 15% of its total shares outstanding). As a result, TransAlta Renewables shareholders will likely…