Opinions
Gajan Kulasingam
Brookfield Infrastructure Partners
BIP.UN-T
HOLD
Mar 31, 2015
Stock price when the opinion was issued
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The closer you are to the top of the house in the Brookfield framework, the closer you are to the CEO and the Board, and the incentive structures tend to favour them. Doesn't have the great yield, but has upside. BAM offers you the yield and, broadly speaking, growth aspects. He'd encourage you to stay near the top of the house, depending on how much yield you need for your life circumstances.
For BIP.UN, it's not really whether Mark Carney got elected or not, or tariffs, because it's a global business. Infrastructure, toll roads, coal, etc. Very diversified.
Has a global footprint. If you have a TFSA or RRSP, you can buy the partnership units and receive the same dividend as on the corporate units but at a 25% discount--a good value in those accounts. Good dividend growth ahead, paying 5.59% now.
(Analysts’ price target is $54.90)Surprised it hasn't done better. Still, happy to continue owning. Stock may be off on questions whether assets can still be sold at a premium in a weakening economy. So far, yes. Yield plus growth. Almost 6% yield, and growing.
Came out of it last December after the election on concerns of a global economy challenged by tariff policies. Riding coattails of general market recovery over last few weeks. Still well positioned down the road for global clean energy, but not right now.
This is today's pick for income investors. Very inexpensive valuation, less than 10x FFO. Very strong dividend yield. Global platform, diversified infrastructure footprint -- rail, storage, utilities, data, energy, midstream infrastructure. Opportunity for significant earnings growth over the medium term, plus opportunity for significant multiple expansion. Cashflow is great.
May have been suppressed because of sluggish deal activity, but that's starting to pick up. Yield is 5.35%.
There has been a pullback so this is good entry point. Business is good and the last quarter beat expectations. It is constantly putting money to work. The stock yields 5.5%. It is a steady compounder and she sees good upside potential. Buy 8 Hold 3 Sell 0
(Analysts’ price target is $56.31)Great area to be in. Executed on everything, but not everything in the stock market always goes up the way you want. Last 12 months has seen a lot of success buying assets at good prices and monetizing old assets. Trades at 10x AFFO, same as last year. Growing at 17% for 2025-2027.
Upside + safety + good valuation + nice dividend + going up 5-10% each year = a TSX stock to put your $$ in.
One of the more unique businesses within his portfolios. Their business strategy is to buy undervalued assets that are sometimes in trouble. They like to recapitalize it, restructure it, grow the business and then sell it and recycle the capital. A very difficult business model to replicate. The 5% distribution model is solid. It has been tough for them to do deals, which is why the stock has held back a little. Recently went into France and expanded into a tower telecom. He is comfortable holding this, but wouldn’t be adding to it.