Everything you need to know about the boosted Transurban dividend

Following on a record final FY 2023 dividend, passive income investors will be pleased by the forecast for FY 2024.

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The final FY 2023 Transurban Group (ASX: TCL) dividend just edged out the FY 2019 final dividend to set a new all-time high payout.

If you're looking to bank that dividend from the S&P/ASX 200 Index (ASX: XJO) toll road developer and operator, here's what you need to know.

What's up with the Transurban dividend?

Transurban reported its FY 2023 results yesterday, 16 August.

Despite reporting a 26% year-on-year increase in toll revenue to $3.3 billion and an increase in proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) to $2.5 billion – both new records – the Transurban share price closed 0.9% lower on the day.

Consensus earnings expectations, it appears, had pencilled in a slightly higher EBITDA figure.

But passive income investors will certainly be pleased with the record-high final Transurban dividend of 31.5 cents per share, 3.5% franked. That beats to FY 2019 dividend by 0.5 cents per share and brings the full-year payout to 58 cents per share, up 40% from FY 2022.

At yesterday's closing price of $13.84 per share, Transurban trades on a yield of 4.2%. The final Transurban dividend alone will deliver an 'instant' yield of 2.3%.

Eligible investors can expect that passive income to land in their bank accounts on Monday, 21 August.

The company's dividend reinvestment plan (DRP) is operational for investors who prefer to reinvest that income over receiving a cash payout.

What kind of passive income can ASX investors expect in the year ahead?

With the toll road business picking up and further strength expected in the year ahead, passive income investors could see another record year for the Transurban dividend in FY 2024.

Commenting on the outlook for the Transurban dividend, CEO Scott Charlton said, "In FY24, we now expect to pay a record distribution of 62.0 cents per share, representing a 7% increase on FY23."

Charlton added:

With positive traffic growth across our key markets, embedded escalation at or above inflation on the majority of revenue and the continued progress on key growth projects, we are well-placed to grow distributions and deliver long term value.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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