Hoping to bag the next Transurban dividend? Read this

As an ASX 200 blue-chip share and toll road operator, many income investors are attracted to the Transurban Group (ASX: TCL) share price for the dividends.

Before 2020, Transurban had a reputation as one of the ‘safest’ dividend shares on the S&P/ASX 200 Index (ASX: XJO). This was due to its defensive toll road assets, and long-term tolling contracts, many of which have inflationary protections built in.

Of course, the pandemic changed this reputation somewhat. Transurban had to deal with an unprecedented fall in demand as Australians were forced into lockdown over 2020 and 2021.

We can see the effects of these lockdowns in the Transurban dividend. The company paid out 61 cents in dividends per share in 2019, but only 31 cents in 2020, and 36.5 cents in 2021.

Transurban shares are about to go ex-dividend

But Transurban investors are set for a treat. The company’s next dividend is approaching. But investors will need to act soon if they wish to receive it. Transurban is scheduled to pay out its final dividend for FY2022 on 23 August.

This latest dividend from Transurban will amount to 26 cents per share. That represents a meaningful rise over the interim payment of 15 cents per share that investors received on 22 February this year. It’s also a healthy increase over last year’s final dividend of 21.5 cents per share.

But the company will trade ex-dividend for this payment on 29 June (this Wednesday). That means that if an investor wants to receive this dividend, they will need to own Transurban shares before this date. From 29 June, new investors won’t be eligible to receive this dividend.

So don’t be surprised if we see a big share price drop for Transurban on Wednesday. This is a normal occurrence when a share trades ex-dividend. It represents the value of the dividend leaving the share price.

At the current Transurban share price, this ASX 200 toll road operator has a dividend yield of 2.84%.

The post Hoping to bag the next Transurban dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy next week
• Here’s 3 popular ASX shares that are trading ex-dividend next week
• 2 ASX 200 infrastructure shares ‘ripe for takeout’: expert
• Transurban share price jumps as dividends hit pre-pandemic highs
• Transurban shares poised for rapid dividend recovery: expert

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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