TAC (TransAlta) Dividend Payout Ratio: 1.81 (As of Mar. 2026) — 417% Above Median


TAC TransAlta Corp TAC
51 GF Score
Price $13.69
GF Value $6.86
Valuation Significantly Overvalued
! 6 Warning Signs
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What is TransAlta Dividend Payout Ratio?

TransAlta TAC 51 Dividend Payout Ratio is 1.81 as of Mar. 2026, which is 417% above its 10-year median of 0.35. GuruFocus rates TAC with a GF Score™ of 51/100 and a GF Value™ of $6.86 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 181 Utilities - Independent Power Producers companies, TransAlta ranks worse than 552485.64% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. TransAlta's Dividend Payout Ratio for the months ended in Mar. 2026 was 1.81.

The historical rank and industry rank for TransAlta's Dividend Payout Ratio or its related term are showing as below:


During the past 13 years, the highest Dividend Payout Ratio of TransAlta was 20.50. The lowest was 0.10. And the median was 0.35.

TAC's Dividend Payout Ratio is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 0.44
* Ranked among companies with meaningful Dividend Payout Ratio only.

As of today (2026-06-24), the Dividend Yield % of TransAlta is 1.41%.

During the past 13 years, the highest Trailing Annual Dividend Yield of TransAlta was 7.72%. The lowest was 1.01%. And the median was 1.84%.

TransAlta's Dividends per Share for the months ended in Mar. 2026 was $0.05.

During the past 12 months, TransAlta's average Dividends Per Share Growth Rate was 8.30% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 7.50% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 8.60% per year. During the past 10 years, the average Dividends Per Share Growth Rate was -1.80% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of TransAlta was 10.50% per year. The lowest was -48.30% per year. And the median was 0.00% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

TransAlta (NYSE:TAC) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

TransAlta Dividend Payout Ratio Related Terms

TransAlta Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for TransAlta's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

TransAlta Dividend Payout Ratio Chart

TransAlta Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 21.57 0.10 0.35 0.00

TransAlta Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.55 0.00 0.00 0.00 1.81

TAC vs CEG, VST, NRG: Dividend Payout Ratio Comparison

For the Utilities - Independent Power Producers subindustry, TransAlta's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

TransAlta Dividend Payout Ratio vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where TransAlta's Dividend Payout Ratio falls into.


TAC
51GF Score
TransAlta Corp TAC
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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TransAlta Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

TransAlta's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Dec. 2025 )/ EPS without NRI (A: Dec. 2025 )
=0.185/ -0.52
=N/A

TransAlta's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=0.047/ 0.026
=1.81

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 1.81 mean?
TransAlta (TAC) has a Dividend Payout Ratio of 1.81 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on TransAlta and its competitors. This is 417% above median its historical median of 0.35. Over the past decade, TransAlta's Dividend Payout Ratio has ranged from 0.10 to 20.50. According to the industry distribution chart, TransAlta ranks #999999 out of 181 companies in the Utilities - Independent Power Producers industry.
Is TransAlta's Dividend Payout Ratio too high?
TransAlta's current Dividend Payout Ratio of 1.81 is 417% above median its 10-year median of 0.35. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 20.50. The Utilities - Independent Power Producers industry median Dividend Payout Ratio is 0.44. TransAlta's value of 1.81 is 311.4% above this industry median. Based on the distribution chart, TransAlta ranks #999999 out of 181 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, TransAlta has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's Dividend Payout Ratio compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #999999 out of 181 companies for Dividend Payout Ratio. This places TransAlta in the lower half of its industry. The industry median Dividend Payout Ratio is 0.44. TransAlta's value of 1.81 is 311.4% above this benchmark. Historically, TransAlta's own Dividend Payout Ratio has ranged from 0.10 to 20.50 over the past decade. While the company's 10-year median is 0.35 vs. the industry median of 0.44, TransAlta has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Utilities - Independent Power Producers company?
The median Dividend Payout Ratio among Utilities - Independent Power Producers companies is 0.44, based on 181 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current Dividend Payout Ratio of 1.81 is 311.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median Dividend Payout Ratio is 0.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current Dividend Payout Ratio is 1.81, which is 417% above median its own 10-year median of 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransAlta stock overvalued right now?
Based on GuruFocus' analysis, TransAlta (TAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.86, compared to a current price of $13.69 — trading 99.6% above its estimated fair value. The current Dividend Payout Ratio is 1.81, which is 417% above median its 10-year median of 0.35 and 311.4% above the Utilities - Independent Power Producers industry median of 0.44. TransAlta's overall GF Score™ is 51/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For TransAlta (TAC), the current Dividend Payout Ratio is 1.81 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is TransAlta (TAC) Overvalued in 2026?

Based on GuruFocus' analysis, TransAlta stock appears to be overvalued. The current stock price of $13.69 is trading 99.6% above its estimated GF Value™ of $6.86. GuruFocus considers TransAlta to be Significantly Overvalued.

Key valuation signals for TAC:

  • Dividend Payout Ratio: 1.81 (417% above median its 10-year median of 0.35)
  • GF Value™: $6.86 vs. price of $13.69 (99.6% above fair value)
  • GF Score™: 51/100 with 6 warning signs
  • Industry Position: 311.4% above the Utilities - Independent Power Producers median (#999999 of 181)

No single metric tells the full story. See the TAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

TransAlta Business Description

Address 1100 1st Street SE, TransAlta Place, Suite 1400, Calgary, AB, CAN, T2G 1B1
TransAlta Corp is an independent power producer based in Alberta, Canada. The company operates a diverse electrical power generation assets in Canada, the United States, and Western Australia. The company has reportable segments namely, Hydro, Wind & Solar, Gas, Energy Transition segment and Corporate Segment. The company generates the majority of its revenue from the gas segment.
51GF Score

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Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$13.69
Price
$6.86
GF Value