Infrastructure assets of all types are crucial to our way of life and our economy. So, naturally, infrastructure stocks are some of the best companies you can buy and hold long term.
And because these businesses are typically generating tonnes of consistent cash flow, infrastructure companies are some of the best dividend stocks you can own.
Not only are they resilient, but the top companies will be consistently expanding their operations. This makes them some of the best stocks to own at the core of your portfolio, helping you to see low-risk and consistent growth for years.
In general, the best long-term investments you can make are in high-quality businesses that have operations that are crucial for our economy. In addition, you want to buy cash cows that have high-quality, long-life assets.
And infrastructure stocks fit that bill perfectly, which is why they are such great investments. So, if you’re looking to add some high-quality dividend stocks to your portfolio, here are two infrastructure stocks with yields of up to 6.1%.
A top energy infrastructure company
Pembina is most widely known for its pipeline segment, which has the capacity to transport more than three million barrels of oil a day. However, the stock has a tonne of other critical energy infrastructure assets that make it one of the top energy stocks to own.
The infrastructure stock also owns several natural gas-processing facilities, storage assets, and LNG fractionation facilities. This portfolio of assets is highly robust, which is why Pembina is such an excellent long-term investment and a reliable dividend stock to own.
At its worst point in the pandemic, Pembina saw a dip in revenue of just 15%. Furthermore, it’s continued to earn impressive cash flow throughout the last year and a half, which shouldn’t be a surprise, considering its high-quality assets and resilient business operations.
So, if you’re looking for a top infrastructure stock to buy today, Pembina stock currently yields an attractive 6.1%.
A top global infrastructure stock
In addition to Pembina, another high-quality infrastructure stock you’ll want to buy and hold for years is Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP).
Brookfield owns a massive portfolio of some of the highest-quality infrastructure assets around the world. This is why, in my view, it offers even more long-term potential than Pembina.
While Pembina is only exposed to the energy industry, Brookfield has midstream energy assets, too. However, it also has utility assets, transportation assets, such as ports, railroads, toll roads, and data infrastructure assets.
This diversification by industry and globally not only helps reduce risk, but it also offers more growth potential and deal flow for Brookfield. While the stock yields less than Pembina at just 3.6% today, that’s still a significant amount, especially considering Brookfield is continuously investing capital in new assets to grow its portfolio.
The fund has a stated goal to grow unitholders’ returns by up to 15% annually in the long run. Furthermore, it looks to increase its dividend by up to 9% annually. So, if you’re looking for a high-quality dividend stock that you can buy and forget about, Brookfield Infrastructure Partners is one of the best there is.