Investing in Canadian Infrastructure: Long-Term Stability and Growth

These three infrastructure stocks are the perfect options for long-term investors seeking income as well as solid growth.

| More on:
grow money, wealth build

Image source: Getty Images

Infrastructure stocks in Canada are some of the best options out there for those seeking long-term growth. They provide stable income from safe options that will be around no matter what is happening. This includes infrastructure that provides everything from the roads we drive to the water we drink.

But which is the best? Today, we’ll get into some Canadian infrastructure stocks that have been around for years and have even more growth on the way.

Canadian Utilities

Canadian Utilities (TSX:CU) is the only stock on the TSX today with 50 years of dividend increases behind it. So, it’s already a great choice if you’re looking for income. But the infrastructure stock is also a solid option for those seeking safety.

The utility stock invests in gas and electricity services. This includes pipelines for natural gas and water as well as the generation and transmission of energy. It operates throughout North America, as well as in Australia, providing a diversified and growing set of revenue.

Shares are down 10% in the last year, plummeting recently as the company as well as other utility stocks have seen a short-term issue with interest rates. The company’s have had to increase costs to cover expenses from rising interest rates. But this is a short-term issue that the company will handle, providing a good opportunity to hop on the stock.

You can pick up the infrastructure stock trading at 15.75 times earnings, with a 4.95% dividend yield as well.

Brookfield Infrastructure

If you want a broad range of infrastructure, consider Brookfield Infrastructure Partners (TSX:BIP.UN). This company provides a wide range of infrastructure both in terms of assets as well as locations — all with the focus on creating long-term, solid income.

This is also benefitted by the company involving itself in industries that would have high costs associated on start up. So, it’s unlikely that a company would suddenly come along and edge in on Brookfield’s territory. Whether it’s railways, bridges, or renewable energy, you can get exposure to it from this stock.

Brookfield stock has seen shares fall 6% in the last year, but they have recovered 13% year to date. So, again, you can still get in on a deal before shares rise higher. What’s more, it offers a 4.21% dividend yield as of writing.

Aecon Group

Finally, we have Aecon Group (TSX:ARE), which invests in infrastructure through construction and concessions. This includes creating public and private infrastructure projects mainly to do with transportation.

Its concessions projects involve the development, financing, construction and operation of infrastructure projects. However, most revenue comes from its construction segment. Yet the company has had a hard time recovering from the pandemic, with supply-chain disruptions leading to a massive backlog in projects.

Shares remain down by about 11% in the last year; however, these have also recovered 39% year to date. So, you can still pick it up with a dividend yield at 5.52% and see shares rise towards 52-week highs.

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 Stocks for Beginners

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

TFSA Income: 3 Canadian Dividend Stocks to Hold for a Lifetime

Looking for passive income that lasts? These three dividend stocks offer some of the best long-term growth opportunities, and dividends…

Read more »

Silver coins fall into a piggy bank.
Stocks for Beginners

Why Dollarama Stock Keeps Going Up

Dollarama stock (TSX:DOL) continues to climb, with shares up 35% in 2024 alone. But does that mean the best has…

Read more »

Various Canadian dollars in gray pants pocket
Stocks for Beginners

4 Stocks Under $50 New Investors Can Buy Confidently

These four stocks are some of the best options for new investors, with share prices under $50 that anyone can…

Read more »

exchange traded funds
Stocks for Beginners

What’s the Best Way to Invest in Stocks Without Any Experience? Start With This ETF

This BMO ETF is a great way to kick-start a diversified beginner investment portfolio.

Read more »

exchange traded funds
Stocks for Beginners

What’s the Best Way to Invest in Stocks Without Any Experience? Start With This Index Fund

One of the best ways to invest in stocks without any experience is through investing in a market-wide fund.

Read more »

Investor wonders if it's safe to buy stocks now
Stocks for Beginners

Waiting for a Market Pullback With the S&P 500 at All-Time Highs? Here’s Why You Probably Shouldn’t

The S&P 500 may still be climbing past all-time highs, but that doesn't necessarily mean you should be sitting on…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

This 6.5% Dividend Stock Pays Cash Every Month

This dividend stock with a 6.4% dividend yield could be your long-term ticket to financial freedom on a monthly basis!

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

3 Growth Stocks That Could Make You Richer in 2024

These three growth stocks are climbing higher and higher, but there is certainly more to come for these companies.

Read more »