Rebecca TeltscherBrookfield Infrastructure PartnersBIP.UN.TOTOP PICKFeb 05, 2024

Likes push higher on the chart in a new uptrend -- looks poised to challenge and break out to new all-time highs (and that's very bullish). Will play a big part in the very bullish Build Out Canada thesis, big tailwind. Chart looks awesome. Yield is 4.72%.

Are excellent at recycling capital. Are a utility, but they have one of the most diversified suite of assets, geographically, with business in airports and data centres. Pays a solid 5% dividend.

There will be an infrastructure spend, and in fact there's an infrastructure deficit (just drive around the streets of Toronto). Likes the category. Yield is almost 5%.

Why not just pick the parent? It's much more diversified, and you'd get the benefit of all its subsidiaries.

He's selling it. The stock is breaking down. In March, it showed signs of low, retracing a support level, but the chart shows lower lows and lower highs.

Huge run over last 2 years in infrastructure stocks due to pretty flat interest rates. Brookfield is an exceptional global manager. Great high-quality, long-term business. Yield is ~4%.

Right now, he sees more upside in energy infrastructure.

If you have any withholding tax in a cash (taxable) account, because the structure is set up not in Canada, you should be able to claim it back on your tax return. So it's better to have in a taxable account than in a TFSA or RRSP, where you can't claim it back.

He owns BN instead.

Seems to trade off on private equity concerns, though there's no direct exposure. Continues to put $$ in at these levels. Oil and nat gas egress stories are still intact.

Growth has sold off and the market is running to income names. In Canada, income names he likes are Rogers and Brookfield Infrastructure.

For income. Is undervalued at 10x cash earnings, and a dividend around 4.5% and paying out only half their funds from operation. There's ample growth ahead and trading at discount valuation. Likes it a lot.

Not a fan of this. They pay a dividend and reinvest capital into new projects, but this makes them dependent on generating capital gains and flipping projects. There's no real free cash flow as you see in a typical utility. Also, they are very interest rate-sensitive; they need to constantly borrow money to develop new projects.

An infrastructure play, and her preference in the utilities space.

Always undervalued. Trades at 11x price to AFFO, growing 11%. Generous distribution, which they boost by 5% every year. He'd buy at these levels.

Owns no Brookfield names, not enthralled by the pieces. If he were to own any of the names, it would be this one -- better potential growth long-term, and is more of a traditional operating company.

(Note the short timeframe.)  Its assets are the backbone that keep the global economy moving forward. Predictable income and strong downside prediction amidst current market uncertainty. Should continue to do well. Expanded data centre platform. Record asset sales for capital recycling.

Dividend increased ~6% for 17th consecutive year. Sees ~15% price upside from here.

He likes this and the parent company, BN-T, which is one of the best equity shops on the planet. Infrastucture investing is a good way to get yield into your portfolio. He slightly prefers BIP because of private equity risks in private equity, like KKR and Apollo.