Best Dividend Paying Stocks Brookfield Infrastructure Partners (NYSE: BIP)

The dividend paying stock that I would like to profile today is Brookfield Infrastructure Partners (BIP). BIP operates high quality, long-life assets around the world that generate stable cash flows and require minimal capital expenditures to maintain.  Due to the nature of its holdings and other monopolistic characteristics, BIP’s infrasturcture assets tend to appreciate in value over time. Its current business consists of ownership and operation of premier utilities assets, transport and energy sector assets, and timber assets in North America, South America, Australasia and Europe.

What does this mean in layman’s terms? It means if you own BIP, you own stakes in dozens of infrastructure monopolies across the entire world. And in addition to capital gains, Brookfield Infrastructure Partners pays investors a 5.54% dividend each year to own it (as of this writing).

Brookfield Infrastructure Partners Map of Operations

BIP holds 1.3 million acres of sustainable (renewable) timberlands in the Pacific Northwest and Canada. It holds electricity and gas trasmission operations in North America. It owns electricity transmission operations and toll roads in South America. It operates ports in the United Kingdom, all across Europe and even China. It operates coal facilities and railroads in Australia. And finally, BIP holds energy distribution operations in Europe and Australasia. These are assets with which no one can compete. A competitor isn’t going to build another electric grid or a new port.

Right now, BIP pays a quarterly dividend of $0.35 per unit. That’s a 27% increase during the past 10 months and gives the units a yield of 5.5%. Dividend-Paying-Stocks.net is bullish on Brookfield Infrastructure Partners and thinks this yield is going to rise. Not only does BIP explicitly state its aim is to raise its distributions 3-7% a year, but it also aims to return 60-70% of its income to investors in the form of dividends. In the most recent quarter, Brookfield Infrastructure Partners paid just 50% of its income in dividends so Dividend-Paying-Stocks.net feels this dividend paying stock has room to raise its distributions in the coming months to reach their target payout ratio.

Diversified High Quality Cash Flow

Stable Cash Flow Profile

Brookfield Cash Flow

Segment Diversification

Brookfield Diversification Diagram

Global Footprint

Brookfield Global Footprint Diagram

 

(full disclosure: I own shares of BIP)

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