When markets wobble, and stock prices dip, long-term investors often look for reliable assets they can hold forever. That’s where energy infrastructure stocks come in. These businesses provide the critical backbone for power, heat, and data transmission and often come with steady income and inflation-protected growth. Among the strongest contenders on the TSX is Brookfield Infrastructure Partners (TSX:BIP.UN), a global infrastructure powerhouse that’s quietly down about 12% from its 52-week high and starting to look like a rare bargain.
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About Brookfield
Brookfield Infrastructure isn’t your typical utility. It owns and operates a massive portfolio of infrastructure assets across the globe. These include natural gas pipelines, electricity transmission lines, railways, ports, toll roads, and even data centres. Because its services are essential, the company can maintain consistent cash flows even in tough economic conditions. And in 2025, with rate uncertainty and geopolitical volatility still clouding the outlook, that consistency is something worth paying for.
Yet the stock is trading at just under $45 per unit as of writing, down from a high of about $50.46. That puts it about 12% off recent highs, offering a window for investors to pick it up at a discount. Part of the pullback is linked to interest rate fears and costlier debt servicing, which is common across capital-intensive businesses. Brookfield Infrastructure has acknowledged higher interest expenses in recent quarters. But if rates ease, the pressure could lift, and the stock may regain ground quickly.
Into earnings
In its first-quarter 2025 earnings, Brookfield reported net income of US$125 million, down from US$170 million the year before. However, funds from operations (FFO) rose by 5% year over year to US$646 million. FFO is a key metric for infrastructure and real estate companies because it focuses on cash generation, not accounting quirks. That 5% growth was driven by inflation-linked revenue increases and new projects contributing to earnings.
The company’s utility segment generated US$192 million in FFO, slightly ahead of last year’s result. It also posted strong gains in its data business, which grew FFO from US$68 million to US$102 million. That segment includes fibre networks and data centres, two high-demand areas as the world leans more heavily on digital infrastructure. Meanwhile, the company has been cycling capital intelligently, divesting non-core assets to fund higher-yielding acquisitions.
Digging dividends
Dividends are another reason investors love BIP.UN. The company currently pays a quarterly distribution of $0.601 per unit, which comes out to about $2.38 annually. That gives the stock a yield of roughly 5.32% at current prices. Brookfield also raised its distribution consistently for more than a decade, and management remains committed to annual growth of 5% to 9%.
That kind of dividend growth, paired with underlying business expansion, creates powerful compounding. For investors looking to lock in steady income while also building long-term wealth, Brookfield Infrastructure ticks a lot of boxes. You’re getting essential services, global diversification, inflation protection, and a strong management team with a history of disciplined capital allocation.
It’s also worth noting that Brookfield’s partnership structure provides tax advantages for Canadian investors holding it in registered accounts like a Tax-Free Savings Account or Registered Retirement Savings Plan. The distributions are treated differently than regular dividends, often reducing the tax burden for long-term holders.
Bottom line
In a world where growth is hard to find, and volatility is high, owning a piece of critical infrastructure has never looked more appealing. Brookfield Infrastructure Partners is built for the long haul. Its recent dip could be just the opening investors need to buy into a steady compounding machine that’s built to thrive through multiple economic cycles. So, if you’re looking for a magnificent infrastructure stock to buy and hold forever, BIP.UN may be the one. It offers growth, income, stability, and global reach. All wrapped into one well-run Canadian stock. Sometimes, the best moves are the quiet ones, and buying this company while it’s down might just be one of them.
