Brookfield Infrastructure Partners (BIP.UN-T)

Announced 2 asset sales, gives them a lot of dry powder. Last quarter beat by ~5%; showed strength in midstream, utilities, data, and transport. Boosted distribution by 6%. Inflation-linked revenues. Large backlog. Data centre growth is a great piece of growth. Trades at 8.5x 2027 AFFO, modeling ~11% growth. Yield is 5.8%.

Just beat by 5%. Strong momentum in its segments. Inflation-linked revenues. Large organic pipeline, robust deal-making. Company's bullish about data growth. His estimates show it growing 11%, and trading at 10x. Fairly priced, nice compounder, dividend grows 6% annually. Yield is 5.4%.

Good US assets, Brookfield management is innovative. Business operations are very strong long term, not affected by short-term tariffs. Now, if tariffs are imposed for the long game, there's almost no name that would be unscathed.

A pick for income, but also has growth; that combo is really important. Really likes still. Would consider buying today.

Q3 banged out another 7% YOY. Inflation-linked revenues. Deal pipeline continues to grow. Hit capital recycling targets for 2024. Modelling 15% AFFO growth rate, yet trading at 9.68%. Still likes it, thinks it'll go higher. Yield is 5%.

Anything not considered Trump-friendly has come off. Long-term hold. Diversified on geography and assets. Yield is now 5%, and growing 5-9% a year.

About 7-8% organic growth every year. Boosts dividend by 5%. Inflation-linked revenues. He's still modelling 15% AFFO growth over the forecast horizon. Really good compounder, not high risk.

One of his go-to names in the space.

Always likes to have a pick for people looking for income. Gives you a bit of opportunity for growth and income for a very long  time. Very diversified, global. Payout ratio is quite reasonable, so a safety play for income. Yield is 4.6%.

Infrastructure stocks have had a good lift over the last 3 months, as have utilities. Yield is 3.6%, and only growing 5-6%. He likes more dividend growth, usually north of 10%. You won't get hurt, but performance might be less than the market.

He prefers the infrastructure builders to the owners. Lots of $$ being spent building infrastructure, and a bit more leverage in the earnings.

It had a solid quarter, especially transport. It is an organic grower (at 7%) with accretive acquisitions and M&A upside. Inflation linked revenues are an asset along with a very robust pipeline. Its dividend is almost 5% and it has good dividend compounding. Lower interest rates are helpful.     
Buy 10  Hold 2  Sell 0

(Note short timeframe.)  Surprised it hasn't moved with lower rates, happy to keep owning. Unique and diversified assets, access to capital. Dividend grows 6-9%.

Bit of a ride. One of his largest positions across portfolios. Assets are world class, not going anywhere, generating tons of free cashflow. Also hard to purchase, so there's a scarcity value there. In this environment where interest rates are on the decline, it should benefit from closing the gap to what underlying assets trade at.

Likes the way they're not afraid to sell assets and recycle profits into another area that they see as having more potential. Pivoting into areas like pipelines and data centres that should benefit them for years to come. Still extremely cheap valuation. Hopefully we're in for some better  years.

Invests in hard assets, with cashflows either regulated or under long-term contracts. Likes it. Owns it indirectly through the parent, BN. Stable, defensible cashflow stream. Yield in excess of 5%, very safe, track record of increasing annually.

It is technically a utility but owns many different infrastructure assets. It typically buys assets at low valuations and sells at higher prices. It is like owning a private equity firm with one of the strongest management teams in Canada. It generally raises its dividend each year. Lower interest rates are a tailwind. Still a buy.

BIP is more sensitive to interest rates, and will constrained when rates rose. Also, they pay a dividend which was competing with high rates. As rates decline, this will benefit BIP and encourage more building projects. In contrast, BEP is a tougher go, because the transition to renewables will take longer than many expect. But BEP is best in class and its managers are fantastic. BEP's use of AI (with Microsoft) will benefit the stock, but we're ahead of ourselves.