Brookfield Infrastructure Partners: A Utility Making the Right Moves

Brookfield Infrastructure Partners, (NYSE:BIP), has the highest dividend in the Utilities section of our High Dividend Stocks by Sector tables. BIP owns electricity transmission systems, timberlands and social infrastructure in North and South America, the United Kingdom and Australia.

By closing a deal with Australian company, Babcock & Brown Infrastructure, BIP is about to make itself even more attractive by acquiring interests in a broader range of infrastructure projects in key areas. These new acquisitions include: Natural gas pipelines in western Australia, a midwestern U.S. gas pipeline, port concessions in China, a coal terminal in Australia, and other gas and electricity distribution assets in the U.K., New Zealand and elsewhere.

BIP compares favorably to its peers in our industry comparison table.

BIP pays a $.265/share dividend quarterly, which is currently a 6.78% dividend yield.

There are also options available for BIP, for those interested in covered calls and covered puts, or cash-secured puts. A possible covered call trade would be to sell the June $17.50 strike, (BIPFW), which has a big bid/ask spread of $.60/$1.60.

Conversely, more skeptical investors might sell the June $15.00 put option, BIPRC, for a 10% yield, ($1.50 bid, or possibly more, since the ask is at $2.50).

Disclosure: No positions yet.