TransAltaTransAlta Corporation (NYSE: TAC) is a diversified energy company with interests in coal, gas, wind, solar, and hydro energy production. It operates its renewable energy business through subsidiary TransAlta Renewables (TSE: RNW).

The parent company is arguably the best option for alternative investors. It is affordable, and it owns 64% of TransAlta Renewables. Through this ownership stake it receives around $150 million CAD of yearly dividends. When combined with its other energy investments, there are strong potential returns for shareholders.

TransAlta increased its revenue by 2.20% in 2018, while gross income increased 4.99%. The company operates with a 22.18% gross profit margin, allowing it to return a dividend of $0.03 per share to investors. This equates to a yield of 1.82%, which is rare in the alternative energy market today.

Subsidiary TransAlta Renewables has increased operational efficiency in recent years. It reduced its debt by $900 million between 2017 and 2018. This will result in a stronger dividend, which can be returned to the parent company and eventually to shareholders.

TransAlta Corporation offers exposure to both alternative energy and traditional energy, making it a strong diversified pick for investors today.

Key Data:

  • 1 Year Price Growth: 37%
  • YTD Price Growth: 38%
  • 3 Month Price Growth: 88%

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