Many, if not most, of the most popular passive income stocks on the ASX have reset their record highs over the past 12 months. That includes Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL). Believe it or not, there's a popular income stock that last hit a new all-time high more than five years ago.
That passive income stock is none other than toll-road operator Transurban Group (ASX: TCL). Yes, Transurban shares last hit an all-time high back in February of 2020, briefly crossing $16 a share for the first (and so far only) time in its history before topping out at $16.30.
Then, the COVID-19 pandemic hit, and Transurban was down to under $11 a share two months later.
The company has recovered, of course, but never reached those heights since. Today, at $14.97 a share at the time of writing, Transurban remains down more than 8% from that all-time high from almost six years ago.
Despite this share price stagnation, the Transurban dividend has never been higher.
The company did have to slash its shareholder payouts for a few years, thanks to the effects of the pandemic (collecting tolls was a tough business back then with all of the lockdowns and such).
Over 2019, this passive income stock paid out a total of 59 cents per share in dividends. But that fell to just 47 cents in 2020 and 3.65 cents in 2021.
However, 2022 saw the company's dividends begin to recover. That year had Transurban fork out 41 cents per share, which rose to 58 cents in 2023. 2024 saw investors get another pay rise, which finally broke the 2019 record with 62 cents per share doled out over that year.
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This passive income stock is set to pay a 4.6% yield
This year, that record was broken again. Transurban paid out its interim dividend of 32 cents per share in February, followed by its final dividend, worth 33 cents per share, in August. That total of 65 cents per share gives Transurban a trailing dividend yield of 4.48% at the current share price.
Transurban is one of the few ASX 200 passive income stocks to give its investors forward guidance when it comes to dividends.
Earlier this month, the toll road operator revealed that it intends to pay out 69 cents per share over 2026. That will come from an interim dividend worth 34 cents per share, and presumably, a final dividend of 35 cents per share.
Let's say that does turn out to be accurate (the company did caveat the announcement with "subject to performance and economic factors"). Those payouts would give this passive income stock a forward dividend yield of 4.61% at today's pricing.
Keep in mind that Transurban's dividends usually don't come with much in the way of franking credits. Even so, many passive income investors might find that yield difficult to turn down in today's environment.
