Is Brookfield Infrastructure's ~6% Dividend Safe?

PropNotes
7.53K Followers
(9min)

Summary

  • Brookfield Infrastructure offers stable, inflation-protected returns from a diverse portfolio of physical assets, making it attractive in today's volatile market environment.
  • BIP's affiliation with Brookfield enhances deal flow and financing, boosting efficiency and shareholder value.
  • Despite seemingly high payout ratios, the Company's cash flows comfortably cover its nearly 6% dividend, which we view as safe and set to grow.
  • While risks exist from leverage and asset complexity, we see BIP as a strong, stable buy for long-term, income-focused investors.

Electricity pylons in the countryside at sunset

Justin Paget

In the market today, many of the world's top businesses operate asset-light, high-margin business models.

Whether that's Apple (AAPL) outsourcing a considerable amount of manufacturing and assembly to third parties around the globe, or Meta

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of BIP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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