TransAlta Corporation
TACUtilities · Stock · quarterly payer
Forward Yield
1.69%
Annual Dividend
$0.20
Payout Ratio
1200%
5-Yr Growth
7.2%
Ex-Date
Sep 1, 2026
Frequency
Quarterly
Summary
As of September 2026, TransAlta Corporation (TAC) yields 1.69% ($0.20 per share annually), with a blended fair-value estimate of $6.87 — -44% downside, so it screens as overvalued. Dividend safety grade: C (61/100). 6 years of dividend growth.
Is TAC a good dividend stock?
Yes, with caveatsTransAlta Corporation (TAC) pays a quarterly dividend yielding 1.69% ($0.20/yr), with 6 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Strong 7.2% 5-yr dividend growth
Risks
- Cut its dividend in 2019
- Elevated payout ratio (1200%)
Key Data
- Dividend Yield
- 1.69%
- Payout Ratio
- 1200%
- Annual Dividend
- $0.20
- 5-Yr Avg Growth
- 7.2%
- Ex-Dividend Date
- Sep 1, 2026
- Years of Growth
- 6
- Frequency
- quarterly
- Beta
- 0.48
- Market Cap
- $3.7B
- P/E Ratio
- —
- 5-Yr Total Return
- 15%
- 52-Week Range
- $11.38 – $17.88
- Dividend Safety
- C · 61/100
- Ever Cut?
- Yes (2019)
Frequently Asked Questions
TAC Price — Last 12 Months
Daily close
Price Return
1 Year
-11%
3 Years
+40%
5 Years
+15%
52-Week Range
$11.38 – $17.88
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is TAC worth?
Overvaluedlow confidenceOur blended fair-value estimate for TransAlta Corporation is $6.87 per share, versus a market price of $12.19. That implies 44% of downside.
Fair Value
$6.87
Current Price
$12.19
Downside
-44%
Margin of Safety
-77%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
At today's price, the market is pricing in about -5.0% annual free-cash-flow growth. We model 20.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, -$0.22 EPS, $0.20 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
TAC Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 1, 2026 | — | $0.0510 | regular |
| Feb 27, 2026 | — | $0.0480 | regular |
| Aug 29, 2025 | — | $0.0470 | regular |
| May 30, 2025 | — | $0.0470 | regular |
| Feb 28, 2025 | — | $0.0420 | regular |
| Nov 29, 2024 | — | $0.0430 | regular |
| Aug 30, 2024 | — | $0.0440 | regular |
| May 31, 2024 | — | $0.0440 | regular |
| Feb 29, 2024 | — | $0.0440 | regular |
| Nov 30, 2023 | — | $0.0400 | regular |
| Aug 31, 2023 | — | $0.0410 | regular |
| May 31, 2023 | — | $0.0400 | regular |
| Feb 28, 2023 | — | $0.0410 | regular |
| Nov 30, 2022 | — | $0.0410 | regular |
Income Calculator
At $0.20 / yr per share
