Sydney Airport Holdings Pty Ltd's (ASX: SYD) chief executive, Geoff Culbert, is upbeat about the future of global travel in anticipation of Boeing's new 777X and Airbus A350-900 hitting the market.
At the annual general meeting, Culbert said that with a growing middle class in parts of the world, especially in China with only 8% of the population having a passport, there will be more international passengers passing through Sydney.
The company expects to meet distribution guidance of 37.5 cents per stapled security, up from 34.5 cents last year. The shares are trading on a forward price-earings-ratio (PER) of 44x and are paying an annual dividend yield of 5%, which is unfranked.
Transurban Group (ASX: TCL), in the same sector, is trading on an even higher forward PER of 61x, and pays an annual dividend yield of 4.8%, which is 8% franked.
