Michael Simpson, CFA Brookfield Infrastructure Partners BIP.UN-T HOLD Jul 04, 2019

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.

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%.

One of his go-to names in the space.

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.

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.

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%.

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

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.

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%.

Management's doing what they said they would. It's a yield + growth play. Not sure why it's not performing as well as other utilities. Capital recyclers, and perhaps market prefers using capital for buy-and-hold projects. But they continue to execute their strategy well.