Infrastructure stocks are considered to be some of the safest investments in the market, because their assets, such as regulated utilities, rail networks, ports, pipelines, and communication towers, are vital components to the world’s economy.
With this in mind, I’ve scoured the industry and compiled a list of three of the best infrastructure stocks money can buy, so let’s take a quick look at each.
1. Brookfield Infrastructure Partners L.P.
Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) owns and operates a diversified portfolio of infrastructure assets, including regulated utilities, rail networks, ports, toll roads, natural gas pipelines and storage facilities, and communication towers that are located across North America, South America, Europe, and Australia.
It pays a quarterly distribution of US$0.57 per share, or US$2.28 per share annually, which gives its stock a yield of approximately 5.4% at today’s levels.
Investors must also make two notes regarding its distribution.
First, it has raised its annual distribution 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, it has a long-term distribution growth target of 5-9% annually.
2. Brookfield Renewable Partners LP
Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) owns and operates a portfolio of renewable energy infrastructure assets, including hydroelectric and wind power-generation facilities that are located across North America, South America, and Europe.
It pays a quarterly distribution of US$0.445 per share, or US$1.78 per share annually, which gives its stock a yield of approximately 6.2% at today’s levels.
Investors must also make two notes regarding its distribution.
First, it has raised its annual distribution for five consecutive years, and its 7.2% hike in February has it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, it has a long-term distribution growth target of 5-9% annually.
3. Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc. (TSX:ENF) owns a portfolio of energy infrastructure assets, including crude oil pipelines and storage facilities, natural gas pipelines, and solar, wind, and waste heat power-generation facilities that are located across North America and are operated by Enbridge Inc.
It pays a monthly dividend of $0.1555 per share, or $1.866 per share annually, which gives its stock a yield of approximately 5.9% at today’s levels.
Investors must also make two notes regarding its dividend.
First, it has raised its annual dividend payment for five consecutive years, and its two hikes since the start of 2015, including its 10% hike in December, have it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, it has a dividend-growth target of 10% annually through 2019.
