3 reasons to buy this $47 billion ASX 200 stock today

A leading expert forecasts more outperformance from this high-yielding, $47 billion ASX 200 stock.

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Key points

  • Transurban Group shares have risen 17.1% over the past year, outperforming the ASX 200 Index, and currently offer a 4.3% unfranked trailing dividend yield.
  • According to Catapult Wealth's Dylan Evans, Transurban is poised for future gains due to its quality infrastructure assets, September quarter results showing increased traffic and revenue with flat costs, and key projects nearing completion.
  • CEO Michelle Jablko highlighted at the AGM ongoing projects like the West Gate Tunnel Project, potential $10 billion in new project discussions, and strategic expansions in North America, aiming for long-term growth and value creation.

S&P/ASX 200 Index (ASX: XJO) stock Transurban Group (ASX: TCL) has started the week in good form.

Shares in the toll road developer and operator closed up 1.1% on Monday, swapping hands for $14.99 apiece.

That sees the company commanding a market cap of $46.7 billion.

Transurban shares have enjoyed a strong run over the past 12 months, with shares up 17.1%. That's well ahead of the 6.8% one-year gains delivered by the benchmark index.

And it doesn't include the 65 cents a share in unfranked dividends the ASX 200 stock has paid out over this period. At Monday's close, Transurban trades on a 4.3% unfranked trailing dividend yield.

And according to Catapult Wealth's Dylan Evans, Transurban is well-positioned to deliver more outperformance in the months ahead (courtesy of The Bull).

Should you buy Transurban shares today?

"Transurban operates toll roads across Australia and North America," said Evans, who has a buy rating on the ASX 200 stock.

Citing the first reason he's bullish on Transurban shares, he said, "It remains one of the few listed quality infrastructure assets available to Australian investors."

Then there's the company's strong September quarter results, released on 8 October, revealing growing revenue amid flat costs.

According to Evans:

Average daily traffic across the group increased by 2.7% in the September quarter, with an average of 2.6 million trips a day. Proportional toll revenue of $3.732 billion in fiscal year 2025 was up 5.6% on the prior corresponding period. Proportional operating costs of $947 million were flat.

As for the third reason you may want to snap up Transurban shares today, Evans said, "Some key projects are nearing completion, which is positive as they begin contributing to earnings and overall traffic volumes."

What's ahead for the ASX 200 stock?

Atop reporting its quarterly results, Transurban also held its annual general meeting (AGM) on 8 October.

Addressing the AGM, CEO Michelle Jablko noted that the ASX 200 stock is "firmly in the final stages" of the West Gate Tunnel Project in Melbourne.

Looking to what could impact Transurban shares in the year ahead, Jablko said:

We have over $10 billion of potential new project discussions in the pipeline. In Brisbane, the Logan West Upgrade is in progress. And with the Olympics fast approaching, we welcomed the Queensland Government's 2032 Delivery Plan, which includes upgrades on the Gateway Motorway.

On the back of strong performance in North America, we're also in the planning stages of our Bi-Directional Project on the 95 Express Lanes.

And we're part of a consortium exploring new projects in Atlanta and Nashville. Taking a partnership approach helps us enter new markets in a disciplined and lower risk way, where we can build our presence over time and support long-term value and distribution growth.

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 positions in and has recommended Transurban Group. 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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