Market sell-offs can be unsettling, even for seasoned investors. The fear of losing money often leads to emotional decisions, with some choosing to sell at a loss or step away from investing altogether. However, history has shown that periods of volatility can also present opportunities. Some Canadian stocks thrive in uncertain conditions, and those are the ones long-term investors should focus on. Brookfield Infrastructure Partners (TSX:BIP.UN) is one of those stocks, offering stability, consistent income, and long-term growth potential.
Numbers don’t lie
Brookfield Infrastructure owns and operates essential infrastructure assets around the world, including utilities, transportation networks, midstream energy infrastructure, and data centres. These industries form the backbone of modern economies, meaning they generate steady revenue regardless of economic cycles. Whether markets are booming or in a downturn, people still need electricity, clean water, internet connectivity, and transportation networks. That makes Brookfield Infrastructure a reliable bet in uncertain times.
The Canadian stock’s most recent earnings report highlighted its resilience. For the full year ending Dec. 31, 2024, Brookfield reported revenues of US$21.04 billion, up from US$17.93 billion in the previous year. This increase reflects the company’s ability to grow despite economic challenges. However, net income came in at US$57 million, down from US$102 million in 2023. While a slight dip in profits might concern some investors, the company’s cash flow remains strong. This is key for its ability to pay dividends and reinvest in new growth opportunities.
One of the most important financial metrics for infrastructure stocks is funds from operations (FFO). This metric provides insight into the Canadian stock’s cash-generating ability from its assets. Brookfield reported an FFO of US$1.223 billion in the second quarter of 2024, representing a 10% increase compared to the previous year. A rising FFO indicates that the company’s operations are growing and generating more cash, which is essential for maintaining its dividend payments.
Solid track record
Brookfield’s dividend track record is another reason why it stands out in volatile markets. The Canadian stock has increased its distribution to shareholders for 16 consecutive years. In January 2025, it announced yet another hike, reinforcing its commitment to returning value to investors. The dividend yield currently sits at around 5%, making it an attractive option for those looking for passive income.
Beyond its stable revenue streams, Brookfield is also positioning itself for future growth. The Canadian stock has been investing heavily in artificial intelligence (AI)-related infrastructure, particularly data centres. The rapid adoption of AI and cloud computing is driving demand for more digital infrastructure, and Brookfield is capitalizing on this trend. The company committed up to €20 billion to expand its AI infrastructure in France, focusing on data centres and network development. This investment aligns with the growing need for digital services and positions Brookfield for long-term success in a rapidly evolving sector.
Furthermore, infrastructure investments tend to be defensive in nature, so they hold up well when markets are under pressure. Investors flock to these types of assets during downturns because they provide steady cash flow and reliable dividend income. Brookfield’s global presence further enhances its resilience, as it is not overly reliant on any one region or economy. This diversification helps it navigate economic slowdowns more effectively than companies with a narrow geographic focus.
Foolish takeaway
For investors worried about market volatility, Brookfield Infrastructure Partners presents a strong case. It offers a blend of stability, income, and growth potential, making it an ideal Canadian stock to own in turbulent times. While short-term market swings can be unsettling, Brookfield’s long-term fundamentals remain intact. Its essential infrastructure assets generate consistent revenue, its dividend is backed by strong cash flow, and its investments in digital infrastructure set it up for future expansion.
In the end, market downturns can create opportunities to buy high-quality stocks at reasonable valuations. Brookfield Infrastructure has proven time and time again that it can navigate economic challenges while rewarding shareholders with steady income. It’s not the kind of Canadian stock that will skyrocket overnight. Yet, for investors looking to build long-term wealth with minimal stress, it’s a must-own name in any portfolio.
