TransAlta Sets Conversion Terms and Dividend Rates for Series A and B Preferred Shares

TransAlta ( (TSE:TA) ) just unveiled an update.

On March 2, 2026, TransAlta said it will not redeem any of its Cumulative Redeemable Rate Reset First Preferred Shares, Series A, or its Cumulative Redeemable Floating Rate First Preferred Shares, Series B, on the March 31, 2026 conversion date. Holders of the TSX-listed Series A and Series B preferred shares can instead choose to retain their current series or convert one-for-one into the other series, within prescribed conditions that prevent either series from falling below one million shares outstanding.

The decision locks in a fixed quarterly dividend rate of 1.19550% (4.78200% annually) on Series A for the five years from March 31, 2026 to March 31, 2031, and a floating quarterly rate of 1.05236% (4.22100% annually) on Series B for the period from March 31 to June 30, 2026, reset quarterly thereafter. Investors must submit conversion elections through their intermediaries by March 16, 2026, a window that gives preferred shareholders flexibility to align income profiles with rate expectations while preserving TransAlta’s existing hybrid capital structure.

The most recent analyst rating on (TSE:TA) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on TransAlta stock, see the TSE:TA Stock Forecast page.

Spark’s Take on TSE:TA Stock

According to Spark, TipRanks’ AI Analyst, TSE:TA is a Neutral.

The score is held back primarily by weakened profitability and a highly leveraged balance sheet, despite strong operating/free cash flow. Technicals are moderately supportive, and the earnings call adds a modest позитиве tilt via reaffirmed guidance and extended credit facilities. Valuation is constrained by the negative P/E and only a modest dividend yield.

To see Spark’s full report on TSE:TA stock, click here.

More about TransAlta

TransAlta Corporation is one of Canada’s largest publicly traded power generators, supplying reliable electricity across Canada, the United States and Western Australia. The company operates and evolves essential energy infrastructure with a technology-diverse generation portfolio, focusing on dependable power delivery as energy systems transition.

YTD Price Performance: 8.41%

Average Trading Volume: 1,167,522

Technical Sentiment Signal: Buy

Current Market Cap: C$5.56B

For detailed information about TA stock, go to TipRanks’ Stock Analysis page.