TransAlta Renewables – monthly dividend income machine

TransAlta Renewables – monthly dividend income machine

I increased my holdings in this monthly dividend paying company on 11 September 2019. TransAlta Renewables is a renewable energy infrastructure company headquartered in Calgary, Alberta and is traded in Canadian Dollars. TransAlta renewables is the renewable energy subsidiary of TransAlta Corporation. The parent company owns roughly 61% of TransAlta renewable’s stock.

Majority of the company’s revenues comes from power generation from wind turbines (46%) and natural gas (47%). It has access to growth capital through the capital markets as well as their parent company; TransAlta Corporation. Find enclosed an investor presentation from May 2019.

Dividend: As mentioned the company pays out a monthly dividend and the current yield is ~7 %. I don’t believe the dividend will increase in the coming periods, but due to the contract length of their assets I believe that the current dividend is sustainable and attractive at these levels. The monthly dividends, stable income and low volatility gives the stock characteristics of a fixed income security, which is a great component for any portfolio.

Historically, the dividend has a 5 % annual CAGR, but the dividend did not increase from 2017 to 2019 suggesting that the future increases will be as great as in the past.


  1. Hi, Nice blog you have here.

    I love investing in green renewables, but dividend growth is of the essence for continued DGI succes. Do you foresee that they will continue the growth later on? With 7% yield growth could be in the 2-3% range for me to still be attractive. Like T for example.


    1. Hi, and thanks!

      I don’t think we’ll see a dividend growth in 2020, but I do believe that they’ll increase dividends when more projects has been dropped down from TransAlta («parent» company) to TransAlta Renewables.


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