As the possibility of the interest rate cycle turning comes into clearer relief, utilities, which have been underperforming in a rising rate environment, should switch back on and begin to outpace their non-dividend paying rivals. And a utility that both pays a dividend AND is growing earnings, would be a great play at this point in the rate cycle. TransAlta (TAC) is managing to do both, and is my Under $10 stock this week.
TransAlta is a Canadian based electric utility company that generates power via wind, hydro, gas, and coal. The company has been in business for over 100 years, and is one of the largest renewables energy companies in North America. The company is a huge wind power producer in Canada, and is the largest hydro power producer in Alberta.
