Keep Calm and Carry On, Just Like Brookfield Infrastructure Partners L.P. and Many More Top-Quality Companies

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) offers calm in the craziness, with a 4.4% dividend and predictable long-term cash flows.

calm, no emotion

It is in times like these that we are tested.

Can we keep calm in the panic, or will we succumb to it and make emotionally charged decisions?

As for me, I have been holding on to a big cash weighting in my RRSP portfolio, waiting for a better opportunity to deploy the cash. I am still waiting. From my experience, these things take time to unwind.

But if we look closely, we can see opportunities.

And, as always, I am still focusing on the long term. So, I am looking for stocks that represent good, stable businesses that will be around for the long haul — stocks like Altagas Ltd. (TSX:ALA), which currently yields 8.2% and is experiencing financial and operational momentum.

Investors can look forward to the WGL acquisition’s high-quality assets and market position to bring Altagas many growth opportunities as well as significant earnings and cash flow accretion.

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) has a 4.36% dividend yield and long-life assets with predictable cash flows and long-term contracts that provide essential services.

And for more of a growth perspective, there are stocks like CGI Group Inc. (TSX:GIB.A)(NYSE:GIB) and Sierra Wireless, Inc. (TSX:SW)(NASDAQ:SWIR).

CGI is a good long-term investment decision, and investors get a real cash machine with this one. In the latest quarter, cash from operations increased 17% to $410.1, or 14.6% of revenue, and free cash flow of $181 million, after capex and acquisitions, for a free cash flow yield of 6.4%.

The company has spent $350 million in the last year on five smaller, tuck-in acquisitions and is still looking out for more. A bigger acquisition is still on the table, as the company’s goal is still to double the size of the company within the next five to seven years.

It has good fundamentals, an attractive valuation, and a good track record — all fundamental reasons to buy this stock.

On to Sierra Wireless, a stock that is increasingly trading at attractive valuations.

At this point, the stock is trading at over $23, or a P/E multiple of 23 times 2017 consensus EPS estimate and 21 times next year’s consensus expected EPS. This is a far cry from the multiples of over 60 times that the stock was trading at back in 2015, so it’s a big improvement. And this is at a time when the company is reporting better-than-expected results, increasing gross margins, and has strong increases in EPS.

Sierra remains well positioned to benefit from the Internet of Things, machine connectivity opportunity.

And with a top-notch balance sheet, with negligible debt and a cash balance of US$74.2 million, the company is well positioned to capitalize on these growth opportunities.

Sierra is another company with good fundamental reasons to buy its stock. It’s a global leader in its industry, it has operational momentum, and it has an attractive valuation.

The key in the down times is to remain focused on the long term, because the long term does not care about the short-term blips, so we have to keep our focus on long-term fundamentals in order to come out ahead.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Karen Thomas owns shares of CGI GROUP INC CL A SV. David Gardner owns shares of Sierra Wireless. The Motley Fool owns shares of Sierra Wireless. Altagas, Brookfield Infrastructure Partners, and CGI Group are recommendations of Stock Advisor Canada.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »