For some investors, a solid income stream, as opposed to a focus on capital returns, is the holy grail.
One stock that is currently paying a very solid trailing dividend is toll roads operator Atlas Arteria Ltd (ASX: ALX), which, according to ASX data, is now paying a dividend yield of 9.36%.
It's worth noting that the Atlas Arteria dividend is unfranked, which might make it less attractive for some investors.
Image source: Getty Images
Steady income streams
So what does the company do?
Atlas Arteria holds stakes in toll road businesses across France, Germany, and the US.
To be more specific, in the company's own words:
Today the Atlas Arteria Group consists of toll road businesses in France, Germany and the United States. In France, we currently own a 30.8% interest in the 2,424km motorway network located in the country's east, comprising APRR, AREA, A79 and ADELAC. In the US, we own a 66.67% interest in the Chicago Skyway, a 12.5km toll road in Chicago and have 100% of the economic interest in the Dulles Greenway, a 22km toll road in the Commonwealth of Virginia. In Germany, we own 100% of the Warnow Tunnel in the north-east city of Rostock.
In February, the company announced a net profit of $181.8 million, down from $300.2 million for the previous year, on revenue of $2.01 billion.
Chief Executive Hugh Weghby said regarding the result:
2025 was another positive year for Atlas Arteria. We delivered strong revenue growth and steady traffic performance. We continued to build and optimise our businesses to improve safety and customer experience. This performance supports a 40 cps distribution for our investors for 2025, in line with guidance. We're focused on building a resilient portfolio for the long term. That starts with getting the most out of the businesses we own – through strong performance and by pursuing value accretive growth opportunities, including preparing for upcoming French concession retenders. We're also actively looking at new opportunities across OECD markets where we see strong fundamentals and the potential to deliver attractive returns for securityholders.
Assurance on dividends
Importantly for investors, the company has signalled its intention to keep the dividend steady at 40 cents per share annually, "supported by growing free cash flow".
So, how many Atlas Arteria shares do you need to generate $10,000 per year?
Thankfully, the maths is quite simple – you need 25,000 shares multiplied by the 40 cent dividend.
This comes to a value of $106,750 at the share price of $4.27 at the time of writing, which is not too far off the 12-month low.
Atlas Arteria is valued at $6.19 billion.
