I Invested in a Cleaner Future with TransAlta Renewables Inc. (RNW)

Purchases

On April 25th, I added 150 shares of TransAlta Renewables Inc. (TSE: RNW) to The Dividend Beginner’s portfolio. I purchased the shares at $12.32 with a trading cost of $6.95 for a total cost basis of $1, 854.95.

TransAlta Renewables Inc pays a monthly dividend of $0.0733 per share, which adds up to an annual dividend of $0.8796. My initial yield on cost works out to 7.14%.

RNW Div Growth

TransAlta Renewables Inc. adds $132.00 to my annual dividend income, or $11 per month. RNW has increased their dividend consecutively for 2 years, since their IPO / split from TransAlta Inc (TSE: TA). They also have plans to increase the dividend by 6% to 7% in 2017/2018 with their South Hedland project coming online.

Before Net Increase After
Annual Dividend Income $1,673.72 $132.00 $1,805.72
Monthly Dividend Income $139.48 $11.00 $150.48
Percentage Increase +7.89%

Thanks to my investment in RNW, I’m very pleased to announce that my monthly dividend income has now surpassed $150 per month. My monthly dividend income goal for 2016 has been accomplished due to my incredibly aggressive investment record so far this year. I had no idea that my dividend income would grow so insanely quickly when 2016 started.

It had a lot to do with the stocks I chose: popular banks whose prices were hammered and resulting yields skyrocketed, as well as other monthly-paying high-yielding financial and energy companies. I put a lot of capital to work since the beginning of January 2016.

I also just recently closed a GIC I had set up before I started investing and now have access to another $5, 500 of capital that was previously locked up in a worthless 1.00% investment.

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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  • Thanks for sharing DB. I am definitely going to add RNW to my portfolio as well. I really like renewables and utilitie space is a reliable and stable income.
    Keep it up bud. Don’t stop and keep hustling it up.

    • Hi Tyler,

      Great to hear another DGIer adding RNW to their portfolio. I found it was the best renewables on the TSX out of all that I found. Ran some comparisons and it came out on top. Look forward to reading your write-up when you buy. Take care.

  • Awesome buy! You just added over $130 a year in dividends in just one purchase. That’s insane! Congrats on surpassing $150 in monthly income. Not a long ago, you were celebrating $100 per month milestone 🙂 Good job!

  • Have you taken a look at Northland Power. They were recently upgraded by the Globe and Mail to being a 25.00 stock when they were trading around 21. They have a couple major off shore ( North Sea ) wind farm projects in the Netherlands and Germany coming on stream next year and I wouldn’t be surprised to see a dividend increase.

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My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.