Transurban Group (ASX: TCL) shares are set to deliver a record amount of passive income.
The S&P/ASX 200 Index (ASX: XJO) toll road developer and operator reported its full-year results on Wednesday.
On the back of record proportional toll revenue of $3.3 billion in FY23, up 26% from FY22, management declared a final dividend of 31.5 cents per share, 3% franked.
Eligible investors can expect to see that all-time high payout hit their bank accounts today, 21 August.
This brings the full-year dividend payment to 58 cents per share. That's 40% more than the passive income Transurban shares delivered in FY22.
At Friday's closing price of $13.17 per share, that equates to a trailing yield of 4.4%.
Which brings us to our headline question.
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What kind of passive income can I expect from Transurban shares in FY24?
The 4.4% yield mentioned above is a trailing yield derived from the dividend payments made over the past 12 months. Future payouts could be higher or lower, depending on a range of company-specific and macroeconomic factors.
So, to try to better gauge how much passive income I might earn over the coming year from a $5,000 investment in Transurban shares today, we'll work with the forecast yield here.
The company noted that FY23 saw a big uptick in its toll road business, with average daily traffic (ADT) hitting new record volumes of some 2.4 million trips. And management was optimistic about further strength for the business in the year ahead.
CEO Scott Charlton said:
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.
Commenting on the outlook for passive income from Transurban shares, Charlton said, "In FY24 we now expect to pay a record distribution of 62.0 cents per share, representing a 7% increase on FY23."
At Friday's closing price, that equates to a trailing yield of 4.7%.
With $5,000, I could buy 378 shares at that price, with enough change left over for a fast food burger.
That would see me earning $234.36 in passive income from those shares over the coming year, along with the potential for Transurban share price growth.
Shares in the ASX 200 toll road operator are up 2.8% so far in 2023.
