What exactly are "toll road businesses"?

Toll road businesses are companies that own essential infrastructure (physical or digital) and collect fees from users who need to access or use that infrastructure. Just like a highway toll booth collects money from every car that passes, these companies collect fees on energy flowing through pipelines, data moving through networks, or payments processed through their systems. They typically don't produce goods or services themselves but provide the critical pathways that others must use.

Why are dividend yields important for these types of stocks?

Dividend yields represent the annual dividend payment as a percentage of the stock price. For toll road businesses, their stable, recurring revenue models often allow them to pay consistent dividends to shareholders. Many investors are attracted to these stocks specifically for this income potential, as the essential nature of their services helps maintain dividend payments even during economic downturns.

What are royalty and streaming companies?

Royalty and streaming companies (like RGLD, FNV, and OR in this collection) provide upfront funding to mining operations in exchange for the right to purchase a percentage of future production at predetermined prices or to receive a percentage of the mine's revenue. This is similar to a toll road business model because they collect a portion of the value that flows through without taking on the operational risks of mining. They essentially own a "toll booth" on the mine's production.

How do these businesses protect against inflation?

Many toll road businesses have built-in inflation protection through contracts that allow for regular price increases tied to inflation rates. Additionally, as the owner of essential infrastructure that's expensive to replicate, they often have pricing power to pass along higher costs to their customers. During inflationary periods, the physical assets they own (like pipelines, towers, or data centers) typically increase in replacement value as well.

What risks should I be aware of when investing in infrastructure companies?

While these businesses often have stable revenue, they face several risks: regulatory changes that could affect pricing power, high debt levels used to finance infrastructure, technology disruption that could make certain infrastructure obsolete, and interest rate sensitivity due to their capital-intensive nature. Additionally, specific risks vary by sector—energy companies face environmental concerns, while digital infrastructure companies may face cybersecurity threats.

15 handpicked stocks

Toll Road Businesses

These gatekeepers of modern commerce own indispensable infrastructure and collect fees on the flow of goods, energy, and data. Our analysts have selected companies with durable, recurring revenues from hard-to-replicate physical and digital networks.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

MasterCard Inc.

Current price

$580.45

Operates a premier global payment network, collecting a fee for each transaction that uses its rails.

Visa, Inc.

Current price

$349.84

Commands a vast, worldwide electronic payments network, earning revenue from the immense volume of transactions it processes.

Crown Castle Inc

CCI

Current price

$95.45

Owns and leases an extensive network of shared communications towers, acting as a landlord to major wireless carriers.

American Tower Corporation

AMT

Current price

$190.21

Digital Realty Trust Inc.

DLR

Current price

$176.35

Equinix, Inc.

EQIX

Current price

$778.74

Join Nemo FREE today and unlock every stock.

It only takes 60 seconds.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+5.20%

≈

About This Group of Stocks

Our Expert Thinking

These businesses function as the gatekeepers of commerce by controlling critical infrastructure that everyone needs to use. They collect recurring fees from the massive volume of traffic flowing through their networks, creating predictable revenue streams that are often insulated from market volatility.

What You Need to Know

Unlike companies that create products or services, these "toll collectors" own the essential pathways for those products and services to reach consumers. Their high barriers to entry and strategic assets—from payment networks to pipelines—provide stability and competitive advantages that can lead to consistent dividends.

Why These Stocks

We've selected market leaders with deeply entrenched competitive advantages in their respective infrastructure sectors. Each company owns critical assets that are difficult or impossible to replicate, giving them pricing power and the ability to benefit from growing global demand for data, energy, and digital payments.

Group Performance Snapshot

5.2%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 5.2% over the next year.

10 of 15

Stocks Rated Buy by Analysts

10 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔄

Consistent Income Engines

These companies generate steady, recurring revenue streams regardless of economic cycles. Their toll-collecting business models can deliver reliable dividends and growth even when markets get choppy.

🚀

Digital Demand Explosion

The insatiable global appetite for data, digital payments, and energy transport is creating more traffic for these networks. As the world gets more connected, these toll roads become increasingly valuable.

🛡️

Inflation-Protected Assets

Many of these companies can raise their fees during inflationary periods, protecting your investment when prices climb. Their essential nature means customers have little choice but to pay the increased rates.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

Why Invest with Nemo Money?

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Opportunities

Gold Miners (Record High Rally) Investment Guide

Gold prices have reached a record high as concerns over a U.S. government shutdown and potential interest rate cuts drive investors to seek safe-haven assets. This trend creates a potential investment opportunity in the companies that explore for and produce gold and other precious metals.

Government Shutdown Impact: Defensive Stocks Explained

A U.S. government shutdown has been triggered by a congressional budget impasse, creating economic uncertainty. This theme focuses on companies in defensive sectors that may prove resilient to the resulting market volatility and disruptions in federal spending.

Zillow Redfin Competitors | Market Disruption

The Federal Trade Commission is suing Zillow and Redfin, alleging their rental listing deal violates antitrust laws. This legal challenge could disrupt the online real estate market, creating opportunities for competing platforms to capture market share.

Frequently Asked Questions

Everything you need to know about the product and billing.