TransAlta Raises Quarterly Dividend 6.25%

TransAlta Corporation (NYSE: TAC) increased its quarterly dividend to $0.051 per share from $0.048, a 6.25% rise. The utility’s shares traded ex-dividend on Sept. 1, 2026.

The new payout corresponds to an annual dividend of $0.20 per share and a forward yield of 1.64% based on a share price of $11.77. TransAlta has now increased its dividend for six consecutive years, rebuilding its record after previously cutting the payout in 2019.

The increase comes as TransAlta continues to navigate softer power prices and reduced market volatility in Alberta. In its second-quarter update, the company said its hedging strategy and active portfolio optimization helped it secure realized prices above spot-market levels. Environmental credits generated by its hydroelectric and wind assets also offset part of the carbon-compliance costs associated with its merchant natural-gas fleet. Management reaffirmed its annual guidance at the time. TransAlta’s second-quarter results

TransAlta operates a diversified electricity-generation portfolio and is pursuing growth through contracted assets and redevelopment opportunities. Current priorities include converting its Centralia facility from coal to natural gas, integrating contracted assets in Colorado and advancing a proposed Alberta data-center power project with CPP Investments and Brookfield. These initiatives are intended to add contracted cash flows and reduce reliance on merchant-market conditions. TransAlta 2025 Annual Report

The company’s investor information page says common-stock dividends are generally paid quarterly in January, April, July and October, subject to board declaration. TransAlta also designates its common and preferred dividends as eligible dividends for Canadian income-tax purposes. TransAlta investor information

What it means for income investors

The higher rate provides shareholders with a modest increase in quarterly income and continues TransAlta’s post-2019 dividend-recovery trend. However, the 1.64% forward yield remains relatively low for a utility, while the dividend carries a safety score of 61 out of 100 and a C grade. Those measures indicate that investors tracking income durability may want to weigh the six-year growth record alongside the company’s exposure to electricity prices, operating performance and capital requirements.