TransAltaTransAlta Corp. (NYSE: TAC) is a diversified energy company that generates power from hydro, wind, solar, gas, and coal sources. While it’s not a pureplay alternative energy pick, its diversification helps to create stability in a transitioning market. For bargain investors looking for an energy company that straddles both the conventional and emerging sides for the energy market, this is a pick to consider.

TransAlta released impressive Q2 financials in July. The free cash flow of $91 million was up 94% compared to the previous year. The company had $1.6 billion in liquidity available at the start of the current quarter, and it had just completed $12 million worth of share buybacks. The company returns value to investors with buybacks and a dividend, making this an excellent choice for alternative investors who want a stock that can produce both price growth and income.

Despite the Coronavirus Pandemic, the company is on track to complete major coal-to-gas conversion projects, which will give it more operational flexibility and lower-cost generation capabilities. Analysts expect a short-term price of $7.87 on the stock, and the dividend today creates a yield of 2.16%. For its potential and reliability, this is an ideal alternative pick.

Key Data:

  • 1 Year Price Growth: -8.51%
  • YTD Price Growth: -15.92%
  • 3 Month Price Growth: 52%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.