In the ever-evolving world of investments, even the wealthiest individuals adjust their portfolios to align with market trends and opportunities. Lately, there’s been chatter about billionaires reducing their stakes in Enbridge (TSX:ENB). Meanwhile, others are shifting their focus toward Brookfield Infrastructure Partners L.P. (TSX:BIP.UN). While both companies operate in infrastructure-heavy industries, the outlooks and growth prospects differ, leading some investors to rethink where they place their capital.
Enbridge stock
Enbridge stock has long been a dominant force in the energy sector, with its extensive pipeline network transporting a significant portion of North America’s crude oil and natural gas. The company continues to generate strong cash flows, supporting a reliable and generous dividend that has attracted income investors for decades. In its most recent earnings, Enbridge stock reported a substantial increase in profit – more than doubling year over year, largely driven by the completion of key U.S. gas acquisitions.
The company also raised its secured growth projects estimate to $27 billion, adding ventures like the Sequoia Solar project in Texas. Looking ahead, Enbridge expects adjusted core earnings to land between $19.4 billion and $20 billion in 2025, emphasizing the continued demand for its oil and gas transportation infrastructure. Despite these strengths, some investors are concerned about its high debt load and a dividend payout ratio that appears stretched, potentially limiting future flexibility.
Brookfield stock
While Enbridge remains a stable dividend payer, Brookfield Infrastructure Partners is capturing the attention of investors looking for growth. In 2024, BIP reported net income of $391 million and funds from operations (FFO) of $599 million in the third quarter – a 7% increase from the previous year. This steady growth reflects the company’s diversified portfolio, spanning utilities, transport, midstream energy, and digital infrastructure.
The shift toward infrastructure investments linked to artificial intelligence (AI) and data centres is playing a key role in BIP’s appeal. The company has been making significant investments in digital infrastructure, including a recent commitment of up to €20 billion in France to expand AI-related infrastructure. This positioning aligns with major global trends, including the increasing demand for data and the modernization of energy grids, both of which are expected to see substantial investment in the coming years.
Growth potential
A major factor driving this shift in billionaire investment strategies is the contrast between the two companies’ future growth potential. Enbridge’s business model remains solid, but it is heavily reliant on traditional energy infrastructure. Some investors believe this has limited upside given the ongoing transition toward renewable energy. BIP, on the other hand, is strategically expanding in sectors poised for long-term growth, including the build-out of AI-related infrastructure, telecommunications, and renewable energy. While Enbridge provides stability and reliable dividends, BIP offers exposure to industries with greater potential for expansion.
For investors, the question comes down to risk tolerance and investment goals. Enbridge stock remains a strong choice for those seeking dependable income, especially given its history of dividend growth and defensive nature in uncertain economic environments. However, its high payout ratio and significant debt mean that future dividend increases could be more modest. And any slowdown in oil and gas demand could create headwinds. Brookfield Infrastructure, while not offering the same level of immediate dividend yield, presents an opportunity for investors, especially those looking to capitalize on infrastructure trends that are being accelerated by AI, digitalization, and global energy transitions.
Bottom line
The recent billionaire sell-off of Enbridge stock doesn’t necessarily indicate trouble for the company, but rather a strategic shift towards assets with more aggressive growth potential. For those who prioritize dividend safety, Enbridge stock still holds strong appeal. However, for investors looking to align with trends that could shape the future, BIP may present a more compelling case. The company’s expanding investments in global infrastructure, including AI-driven data centres, telecommunications networks, and modernized energy systems, position it well for sustained growth.
Enbridge stock remains a cornerstone of Canadian energy, providing stability and consistent returns. Meanwhile, Brookfield Infrastructure represents an evolving investment opportunity linked to technological advancements and global infrastructure needs. The decision between the two ultimately depends on whether an investor values immediate steady income or long-term growth potential in emerging sectors.
