Turn $10,000 Into $160K in 17 Years Buying 226 Shares in This Stock

Forget about cheap stocks and instead look for stability, which is what you’ll get with this company providing strong growth for the next few decades.

| More on:
edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

Image source: Getty Images

Now with an article like this, the ending of the story is pretty much in the headline. It’s like reading the last page of a book without going through the entire story. The thing is, it’s how you get to the end of the story that matters. And why you should read it in the first place.

That’s what I want to demonstrate here. The stock I’m going to discuss is a strong choice for a number of reasons. And it’s stable. That’s why it’s a company that likely will reach this amount over the next several years.

So today, let’s look at why Brookfield Infrastructure Partners LP (TSX:BIP.UN) is a great choice on the TSX today.

Infrastructure is necessary

I mean this literally. We don’t survive without infrastructure. Whether it’s the roads we need to get to work, or the water that comes through our taps, infrastructure is behind it. However, there are also growing industries within this field as well.

With that in mind, a company like BIP stock is a great choice for during a recession, after a recession, and for decades to come. You can be certain the company will continue to grow thanks to the essential services provided by infrastructure. You can also be sure it will be around for decades because it’s backed by a major parent company.

In fact, BIP stock should continue to do well for the foreseeable future, and even see major growth with the rise of interest rates. It can therefore charge higher prices and lock in interest rates with its partners at higher costs as well.

Steady cash means steady growth

With BIP stock you can therefore look forward to a steady flow of cash coming in for decades. Its long-term contracts allow for income that won’t disappear overnight, even should shares drop in the next few months because of a recession.

That’s why it’s always a good time to pick up the stock if you’re hoping to hold long term. Who cares if it’s a steal now if you’ll have insane growth over the next several years?

With that in mind, let’s finally get to the math behind what that $10,000 investment could get you.

YearShares OwnedAnnual Dividend Per ShareAnnual DividendCompound FrequencyAfter DRIP ValueYear End Shares OwnedYear End Stock PriceNew Balance
1226.00C$2.04C$460.92quarterlyC$10,467.19235.30C$50.43C$11,866.94
2235.30C$2.26C$531.28quarterlyC$12,407.21244.70C$57.49C$14,068.58
3244.70C$2.50C$611.67quarterlyC$14,690.29254.18C$65.54C$16,659.89
4254.18C$2.77C$703.43quarterlyC$17,374.53263.74C$74.72C$19,706.92
5263.74C$3.06C$808.07quarterlyC$20,527.50273.38C$85.18C$23,286.47
6273.38C$3.39C$927.29quarterlyC$24,227.69283.07C$97.11C$27,487.80
7283.07C$3.76C$1,063.00quarterlyC$28,566.31292.81C$110.70C$32,414.60
8292.81C$4.16C$1,217.35quarterlyC$33,649.21302.60C$126.20C$38,187.25
9302.60C$4.60C$1,392.76quarterlyC$39,599.17312.41C$143.87C$44,945.39
10312.41C$5.10C$1,591.93quarterlyC$46,558.59322.25C$164.01C$52,850.94
11322.25C$5.64C$1,817.92quarterlyC$54,692.44332.10C$186.97C$62,091.57
12332.10C$6.25C$2,074.13quarterlyC$64,191.83341.95C$213.14C$72,884.65
13341.95C$6.91C$2,364.40quarterlyC$75,277.97351.80C$242.98C$85,481.82
14351.80C$7.65C$2,693.03quarterlyC$88,206.83361.64C$277.00C$100,174.28
15361.64C$8.47C$3,064.82quarterlyC$103,274.45371.45C$315.78C$117,298.84
16371.45C$9.38C$3,485.18quarterlyC$120,823.04381.24C$359.99C$137,244.88
17381.24C$10.39C$3,960.13quarterlyC$141,248.07391.00C$410.39C$160,462.35

So if you’re looking for steady growth from a strong company that provides stable dividends, you can’t get much better than BIP stock.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A worker drinks out of a mug in an office.
Dividend Stocks

1 Dividend Stock to Buy if the Bank of Canada Keeps Cutting Rates 

This dividend stock is sure to benefit from ongoing cuts in the key interest rate and is already seeing some…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

How Much Cash Do You Need to Quit Work and Live Off Dividend Income

Toronto-Dominion Bank (TSX:TD) pays a lot of dividend income. Can you live off of it in retirement?

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Dividend Stocks

Invest $10,000 in This Dividend Stock for $1,398.40 in Passive Income 

This dividend stock offers a whopping 11.9% dividend yield right now, with returns that should fly high for this cyclical…

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

This 6.1 Percent Dividend Stock Is My Pick for Instant Income

Here’s what makes Transcontinental one of my top dividend stock picks right now for instant income.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

For a Shot at $5,000/Year in Passive Income, Buy 1,000 Shares of This TSX Stock

Do you know you can build passive income with TSX stocks? A $22,000 investment can give you a shot at…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

A new Canoe EIT Income Fund (TSX:EIT.UN) investment could earn almost 9% yield annually, and the monthly dividend stock has…

Read more »

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

RRSP Wealth: 2 Great Dividend Stocks to Own for Total Returns

Dividend stocks like Fortis Inc (TSX:FTS) can be great additions to a well-diversified portfolio.

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Cheap Stocks to Add to Your TFSA Before They Get Expensive

The stock market has some lucrative TFSA stocks trading at multi-year lows. Now is a good time to buy these…

Read more »