Infrastructure stocks are considered to be some of the safest investments in the market today, because their assets, such as roads, rail networks, ports, pipelines, storage facilities, communication towers, and power-generation facilities, are vital components to the world’s economy.
With this in mind, I’ve selected two companies with great portfolios of infrastructure assets and high and safe dividend yields, so let’s take a closer look at each to determine which would be the best fit for your portfolio.
1. Brookfield Infrastructure Partners L.P.
Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) is one of the largest owners of infrastructure assets in North America, South America, Australia, and Europe. Its assets include regulated utilities, rail networks, toll roads, ports, liquids pipelines and storage facilities, and communications towers.
It currently pays a quarterly dividend of US$0.57 per share, or US$2.28 per share annually, which gives its stock a yield of about 5.8% at today’s levels.
It is also important for investors to make two notes.
First, Brookfield has raised its annual dividend payment for six consecutive years, and its 7.5% hike in February has it on pace for 2016 to mark the seventh consecutive year with an increase.
Second, the company has a target payout ratio of 60-70% of its funds from operations and an annual distribution growth target of 5-9%.
2. Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc. (TSX:ENF) owns a diverse portfolio of energy infrastructure assets, all of which are operated by Enbridge Inc. Its assets include liquids pipelines and storage facilities, wind farms, solar farms, and waste heat recovery facilities.
It currently pays a monthly dividend of $0.1555 per share, or $1.866 per share annually, which gives its stock a yield of about 6.1% at today’s levels.
It is also important for investors to make two notes.
First, Enbridge Income Fund has raised its annual dividend payment for five consecutive years, and its recent increases, including its 10% hike in December 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, the company has a target payout ratio of 80% of its cash available for distribution and an annual dividend growth target of 10% through 2019.
Should you buy one of these infrastructure stocks today?
Brookfield Infrastructure Partners and Enbridge Income Fund Holdings are two of the most attractive infrastructure stocks in the market today. All Foolish investors should strongly consider making one of them a core holding.
