Monthly High-Dividend Stock Yields 7%, Has A 72% Payout Ratio, With Strong Growth Prospects

Looking for sustainable monthly dividends? We recently discovered a Canadian utility. This stock yields 6.68%. The trailing payout ratio is 72.10%. It has a large project which started operations in Q3 that will add over 30% to its EBITDA. It has 6% CAGR dividend growth.

TransAlta Renewables, Inc. (TRSWF/RNW) owns and operates hydro facilities, wind farms, and natural gas facilities in Western and Eastern Canada and also holds an economic interest in the Wyoming Wind Farm. It also owns the South Hedland power station in western Australia. TransAlta Corp. (NYSE:TAC) is the parent company of TRSWF, and has been in the power business since 1911. The two companies share management - TRSWF's CEO/President Brett Gellner is also the Chief Investment Officer of TransAlta Corp.; Aron Willis is Sr. VP of Gas and Renewables of both companies; and Donald Tremblay is the CFO of both companies. Like many of the companies we cover in our articles, TRSWF's business model is based upon long-term contracts - it currently has an average of 12 years left on its contracts:

Source: Seeking Alpha

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