Brookfield Infrastructure: Blockbuster 6.2% Dividend Hike As Storm Clouds Rise

2025-03-09 13:19:02 ET

Summary

• Brookfield Infrastructure started 2025 with a 6.2% dividend raise, declaring a quarterly cash dividend of $0.43 per unit, $1.72 per unit annualized for a 6% dividend yield.
• The company's transport segment will likely see headwinds in 2025 as the US is set to fall into a recession and global trade volume dips due to tariffs.
• BIPH continues to offer a healthy option for exposure to the company's assets.

Brookfield Infrastructure ( BIP ) ( BIPC ) kicked off 2025 with a blockbuster 6.2% dividend raise, declaring a quarterly cash dividend of $0.43 per unit , $1.72 per unit annualized with the dividend yield at 6% representing a healthy spread over the current US 10-year Treasury yield at 4.3% ( US10Y ). This comes with exposure to a security that has grown its distributions at a compound annual growth rate of 7% over the last decade and is targeting a 12% to 15% total annual return on invested capital over the long term. I own a significant position in the company's investment grade 5.0% Subordinated Notes ( BIPH ), which are now trading higher from my prior coverage at $17.61 per share for a 7.1% yield on cost and for 70 cents on the dollar....

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