Brookfield Infrastructure owns a diversified, global portfolio of essential infrastructure assets and has a long track record of high-quality cash flows and high returns on equity. It is now finally available to invest in through a normal c-corp after the creation of Brookfield Infrastructure Corporation (BIPC). Importantly for dividend investors, the company is aiming for dividend growth in the range of 5-9% on top of an already high yield. The stability of the cash flows and the quality of assets make this company a dividend stock for decades to come. It’s a perfect fit for my personal portfolio.
The cash flows are well diversified by region and by sector. No region makes up more than 30% of cash flows. Largest sector is utilities at 32%.
95% of total cash flows is either contracted or regulated which makes the cash flows stable. That is crucial for dividend safety. At the time of unprecedented money printing, protection against inflation can also become very important. 75% of Brookfield Infrastructure’s EBITDA is indexed to inflation.
The company expects the impact of a possible recession to be insignificant at around 5% of Brookfield Infrastructure’s FFO.
For my detailed analysis article on BIPC, click here.
Disclaimer: I may hold positions in companies mentioned. This is NOT an investing recommendation. You can lose your invested capital. I am not a financial professional of any kind. Before making any investing or financial decisions, contact an appropriate professional. All content on this website is for entertainment purposes only.
