Atlas Arteria share price set to drop as the company trades ex-dividend

The Atlas Arteria Group Ltd (ASX: ALX) share price is set to fall this morning as the shares begin trading ex-dividend.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Atlas Arteria Group (ASX: ALX) share price is set to fall this morning as the shares begin trading ex-dividend.

How much is the Atlas dividend?

On Tuesday, Atlas announced a 15 cents per stapled security (cps) distribution for the first half of the year which will be paid by both Atlas Arteria Limited (ATLAX) and Atlas Arteria International Limited (ATLIX).

The ATLAX distribution will comprise a 7.8 cps capital return and an unfranked dividend of 0.2 cps, while the ATLIX distribution will comprise a foreign dividend of 7.0 cps.

This 15 cps distribution represents a pro-forma annualised dividend yield of 4.22% based on yesterday's closing price of $7.11 per share.

What's been happening for Atlas?

Atlas Arteria, formerly known as Macquarie Atlas Roads, is one of the world's largest developers and operators of private toll roads.

The company last week announced its FY18 results (its first as Atlas Arteria) which has the company's share price to a record high and seen its market cap swell to $4.9 billion.

The Atlas share price has been a top performer in recent years and has rocketed 140% higher in the last 5 years as it has grown its asset base and continued to perform strongly within the Macquarie Infrastructure Group.

This extended period of growth has seen the Atlas share price outperform several of its ASX infrastructure and engineering peers in recent years including Seven Group Holdings Ltd (ASX: SVW) and Qube Holdings Ltd (ASX: QUB).

Is Atlas in the buy zone?

With Atlas shares beginning to trade ex-dividend today, Fools might be considering jumping on board with Atlas to ride the share price even higher in 2019.

While the company has proven to be a reliable performer over an incredibly long period of time, I think headwinds are continuing to build in the Industrials sector, particularly in construction. I'd be wary of further organic growth for the group despite Atlas' potential to deliver a stable 4.00% dividend yield from its toll road income even in an economic downturn.

For those are similarly bearish on Atlas, I think these top growth shares could prove to be market-beaters in a diversified portfolio.

Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »