Dividend Information

Common Stock Dividends

Dividends are paid quarterly as determined by TransAlta's Board of Directors. In determining the level of the dividend, the Board assesses the dividend payout as a percentage of earnings and as a percentage of cash flow from operations over a period of time. The Board continues to focus on building sustainable earnings, cash flow, and dividend growth and has adopted a formal dividend policy that targets to pay shareholders an annual dividend in the range of 60 to 70 per cent of comparable earnings.  

All dividends paid by TransAlta in 2006, 2007, 2008, 2009, 2010, and 2011 are pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.

Common stock dividends are paid on the first of the month in January, April, July and October. When a dividend payment date falls on a weekend or holiday, the payment is made the following business day. Dividends are paid in Canadian dollars.

Payment Date Record Date Ex-Dividend Date Amount
April 1, 2012 March 1, 2012 Feb. 28, 2012 $0.29
Jan. 1, 2012 Dec. 1, 2011 Nov. 29, 2011 $0.29
Oct. 1, 2011 Sept. 1, 2011 Aug. 30, 2011 $0.29
July 1, 2011 June 1, 2011 May 26, 2011 TAC* $0.29
July 1, 2011 June 1, 2011 May 30, 2011 TA* $0.29
April 1, 2011 March 1, 2011 Feb. 25, 2011 $0.29
Jan. 1, 2011 Dec. 1, 2010 Nov. 29, 2010 $0.29
Oct. 1, 2010 Sept. 1, 2010 Aug. 30, 2010 $0.29
July 1, 2010 June 1, 2010 May 28, 2010 $0.29
April 1, 2010 March 1, 2010 Feb. 25, 2010  $0.29
Jan. 1, 2010 Dec. 1, 2009 Nov. 27, 2009 $0.29
Oct. 1, 2009 Sept. 1, 2009 Aug. 28, 2009 $0.29
July 1, 2009 June 1, 2009 May 28, 2009 $0.29
April 1, 2009 March 1, 2009 Feb. 25, 2009 $0.29
Jan. 1, 2009 Dec. 1, 2008 Nov. 26, 2008 TAC** $0.27
Jan. 1, 2009 Dec. 1, 2008 Nov. 27 2008 TA** $0.27
Oct. 1, 2008 Sept. 1, 2008 Aug. 27, 2008 $0.27
July 1, 2008 June 1, 2008 May 28, 2008 $0.27
April 1, 2008 March 1, 2008 Feb. 27, 2008 $0.27
Jan. 1, 2008 Dec. 1, 2007 Nov. 29, 2007 $0.25
Oct. 1, 2007 Sept. 1, 2007 Aug. 30, 2007 $0.25
July 1, 2007 June 1, 2007 May 30, 2007 $0.25
April 1, 2007 March 1, 2007 Feb. 27, 2007 $0.25
Jan. 1, 2007 Dec. 1, 2006 Nov. 29, 2006 $0.25

*Note: The dividend payment has two Ex-Dividend dates due to the American Memorial day holiday. The Toronto Stock Exchange (TA) Ex-Dividend Date is May 30, 2011. The New York Stock Exchange (TAC) Ex-Dividend date is May 26, 2011.

**Note: The dividend payment has two Ex-Dividend dates due to the American Thanksgiving holiday. The Toronto Stock Exchange (TA) Ex-Dividend date is November 27, 2008. The New York Stock Exchange (TAC) Ex-Dividend date is November 26, 2008.

Preferred Share Dividends

Preferred share dividends are paid on the last day of the month in March, June, September, and December. When a dividend payment falls on a weekend or holiday, the payment is made on the following business day. Only dividend payments that have been approved by the Board of Directors are included in the following table.

Cumulative Redeemable Rate Reset First Preferred Shares, Series A

Fixed cumulative preferential Series A cash dividends are paid quarterly when declared by the Board at the annual rate of $1.15 per share from the date of issue December 10, 2010 to but exceeding March 31, 2016.

 

Payment Date Record Date Ex-Dividend Date Amount
March 31, 2012 March 1, 2012 Feb. 28, 2012 $0.2875
Dec. 31, 2011 Dec. 1, 2011 Nov. 29, 2011 $0.2875
Sept. 30, 2011 Sept. 1, 2011 Aug. 30, 2011 $0.2875
June 30, 2011 June 1, 2011  May 30, 2011 $0.2875
March 31, 2011 March 1, 2011  Feb. 25, 2011 $0.3497*

*Note: The first quarterly dividend payble is based on a longer period, starting from the issue date of December 10, 2010 to March 31, 2011.

Cumulative Redeemable Rate Reset First Preferred Shares, Series C

Fixed cumulative preferential Series C cash dividends are paid quarterly when declared by the Board at the annual rate of $1.15 per share for the initial period ending June 30, 2017.

 

Payment Date Record Date Ex-Dividend Date Amount
March 31, 2012 March 1, 2012  Feb. 28, 2012 $0.3844*

 *Note: The first quarterly dividend payble is based on a longer period, starting from November 29, 2011 to March 31, 2012.

Dividend History (Common Stock)

Year Annual Dividend   Year Annual Dividend
2011 $1.16      
2010 $1.16   2000 $1.00
2009 $1.16   1999 $1.00
2008 $1.08   1998 $0.99
2007 $1.00   1997 $0.98
2006 $1.00   1996 $0.98
2005 $1.00   1995 $0.98
2004 $1.00   1994 $0.98
2003 $1.00   1993 $0.98
2002 $1.00   1992 $0.98
2001 $1.00   1991 $0.98

Transalta's common shares have paid regular quarterly dividends since 1956.

Dividend Reinvestment and Share Purchase Plan (DRASP)

Conveniently reinvest your TransAlta dividends and purchase common shares without brokerage costs. Additional Information about TransAlta's DRASP is available by clicking here.

For More Information:

Shareholder inquiries regarding change of address, stock transfer, registered shareholdings, dividend or multiple copies of mailed material should be directed to CIBC Mellon Trust Company.

CIBC Mellon Trust Company
P.O. Box 7010 - Adelaide Street Station
Toronto, Ontario M5C 2W9

Phone: 1-800-387-0825 toll free in North America
Phone: (416) 813-4600 in Toronto or outside North America
Fax: (416) 813-4555

Email: inquiries@cibcmellon.com

Last updated: January 26, 2012