The Transurban Group (ASX: TCL) share price hit a 52-week high of $12.95 today after the group confirmed a Victorian parliamentary bill on traffic management and trucks has passed the chambers to provide a concession date for Transurban's West Gate Tunnel Project of 13 January 2045.
Transurban owns monopoly-like toll roads across Queensland, NSW, Victoria and in the Greater Washington region of Virginia, USA.
The toll roads provide defensive revenue streams as motorists have little option but to use them, while once constructed they also operate on scarily high gross profit margins as road maintenance costs little compared to the volume of paying traffic every day.
It's the investment in constructing the roads that is the huge overhead, with Transurban carrying a lot of debt and regularly issuing equity to fund new construction projects in western Sydney (West Connex) and greater Melbourne via the West Gate Tunnel project.
The company's reliable earnings and cash flows mean it's popular with investors for its dividends that are forecast to hit 59 cents per share over FY 2019.
That means it offers a 4.5% yield and today's share price. Another infrastructure share popular with dividend investors is Sydney Airport Holdings Ltd (ASX: SYD) that offers a higher yield based on forecast dividends.
