In This Article:
Understanding the Upcoming Dividend Payout and Historical Performance
Transurban Group(TRAUF) recently announced a dividend of $0.3 per share, payable on 2024-02-13, with the ex-dividend date set for 2023-12-28. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Transurban Group's dividend performance and assess its sustainability.
What Does Transurban Group Do?
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Transurban Group is an owner/operator of toll roads in Melbourne, Sydney, and Brisbane. It also owns toll roads in Virginia, USA and Montreal, Canada. The weighted average concession life across the portfolio is about 28 years. Australian assets contribute around 90% of proportional revenue.
A Glimpse at Transurban Group's Dividend History
Transurban Group has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Transurban Group's Dividend Yield and Growth
As of today, Transurban Group currently has a 12-month trailing dividend yield of 4.15% and a 12-month forward dividend yield of 4.31%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Transurban Group's annual dividend growth rate was 7.60%. Extended to a five-year horizon, this rate decreased to -2.90% per year. And over the past decade, Transurban Group's annual dividends per share growth rate stands at 3.90%.
Based on Transurban Group's dividend yield and five-year growth rate, the 5-year yield on cost of Transurban Group stock as of today is approximately 3.58%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Transurban Group's dividend payout ratio is 27.62, which may suggest that the company's dividend could be sustainable.
Transurban Group's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Transurban Group's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.