Should You Ride the Wave in Brookfield Infrastructure (TSX:BIP.UN)?

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) is a Canadian stock that is worth your attention in the middle of August.

| More on:
Person slides down a stair handrail

Image source: Getty Images

Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is an offshoot of the Brookfield Asset Management multinational company. This Toronto-based company owns and operates utilities, transport, midstream, and data businesses in North America and around the world. Today, I want to discuss whether investors should look to jump on the momentum this top Canadian stock has built in recent weeks. Let’s jump in.

How has this Canadian stock performed so far in 2022?

Shares of this Canadian stock have climbed 7.8% month over month as of close on August 12. The stock has now increased 2.7% in the year-to-date period. Brookfield hit a major roadblock in late June, as it looked like it would succumb to the broader volatility that struck North American markets. Fortunately, that bout of turbulence was short lived.

Investors should be excited about this Canadian stock that offers exposure to a diversified batch of reliable industries. It has proven to be a reliable dividend payer while delivering on consistent growth in recent years.

Should investors be encouraged by Brookfield’s recent earnings?

This company released its second-quarter fiscal 2022 results on August 3. Brookfield delivered net income growth of $200 million after adjusting for the impact of disposition gains recognized on its capital-recycling program in the current and comparable period. Meanwhile, it reported funds from operations (FFO) of $513 million — up from $394 million in the previous year. FFO rose to $1.00 billion in the first six months of 2022, which was up from $825 million in the year-to-date period in 2021.

Brookfield delivered the strongest growth in its funds from operations in its Midstream segment. This does not come as a big surprise considering the spike in oil and gas prices this year. It was also significantly bolstered by the acquisition of its Canadian midstream operation.

New investment activity spurred the company to double its annual new investment target to a whopping $1.5 billion. Better yet, it secured promising acquisitions in the form of two Australian utilities and three in the utilities and data segments. The latter three were based in Australia, North America and Europe, and Germany.

Overall, investors should be pleased with Brookfield Infrastructure’s most recent quarterly report. It delivered strong results in it each of segments, particularly midstream. Moreover, it is confident in a bright future, as it continues to execute its aggressive acquisition strategy. So, is the Canadian stock worth snatching up as we approach the end of the summer season?

Is this Canadian stock worth buying today?

Brookfield Infrastructure stock is currently trading in favourable value territory compared to its industry peers. The company is on track for strong earnings growth going forward. This stock last paid out a quarterly dividend of $0.36 per share. That represents a 3.5% yield.

Investors who want a diversified Canadian stock that offers a chance at capital growth and solid income should look to snag Brookfield Infrastructure at the midway point in August.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV and Brookfield Infra Partners LP Units.

More on Investing

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

3 Canadian Growth Stocks I’d Buy Under $30

These under $30 Canadian growth stocks are well-positioned to capitalize on mega trends such as e-commerce, the electrification of vehicles,…

Read more »

Gas pipelines
Stocks for Beginners

3 Reasons to Buy Enbridge Stock Like There’s No Tomorrow

Enbridge (TSX:ENB) is a superb long-term option. Here's why you should buy Enbridge stock right now and hold it for…

Read more »

money cash dividends
Dividend Stocks

This 8.39% Dividend Stock Can Pay $100 Cash Every Month

Consider investing in this monthly dividend stock at current levels to lock in high-yielding monthly distributions to create a good…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why This Tech Stock Just Jumped 18%

This tech stock just saw shares surge after announcing it was being acquired, but more growth could still be in…

Read more »

Canadian flag

3 Top-Performing Canadian Stocks That Should Just Keep Winning

Given their healthy growth prospects and solid underlying businesses, the uptrend in these three top-performing Canadian stocks could continue.

Read more »

The sun sets behind a power source

3 Reasons to Buy Fortis Stock Like There’s No Tomorrow

As far as top dividend stocks are concerned, Fortis (TSX:FTS) remains a top option long-term investors should consider right now.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Here’s the Average TFSA Balance in 2024

The Bank of Montreal (TSX:BMO) says that the average TFSA balance is $41,510, far below the maximum.

Read more »