Infrastructure investments — they have the potential to provide steady, predictable, and worry-free cash flows. But as always, we have to ensure that the investments we choose to invest in have the strength and staying power to protect and grow our capital.
This is why I’m highlighting Brookfield Infrastructure Properties (TSX: BIP.UN) — an infrastructure investment with a strong balance sheet, stable cash flows, and a generous dividend. Let’s explore this more deeply.
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What is Brookfield Infrastructure Partners?
In a nutshell, Brookfield Infrastructure Partners is a global infrastructure company. It owns and operates long-life assets in the utilities, transport, midstream, and data industries across the globe. These industries are essential, and this makes Brookfield well-positioned in the infrastructure space.
In fact, as owners of this large-scale, irreplaceable and highly contracted infrastructure business, Brookfield is quite insulated from economic troubles. This has translated into solid returns for both Brookfield and its shareholders. The company’s strong balance sheet gives it strong access to capital and stable cash flows, and its highly contracted business is inflated indexed.
Brookfield’s safe and generous dividend yield
Brookfield Infrastructure is currently yielding a very generous 5.16%. This is backed by the company’s strong balance sheet. In the first quarter of 2025, Brookfield continued to carry a heavy debt load, but this is the nature of this type of business — it’s very capital-intensive. I would watch these debt levels as the company continues to take on more debt to fund the business.
Importantly, Brookfield is trying to get its debt situation under better control. This is why the company’s goal is to monetize or sell $5 to $6 billion of mature assets. This will enable the company to reduce debt and to fund new growth projects.
Looking ahead
Speaking of new growth projects, Brookfield is targeting new investment opportunities in high-growth areas. Digitization, decarbonization, and the return of U.S. manufacturing are the megatrends that the company is looking to position itself for. These trends will fuel the next infrastructure super cycle.
Brookfield’s data infrastructure business is an area of high growth for the company. In 2024, this segment accounted for 13% of the company’s funds flow. The growth of hyperscalers is currently rapid and accelerating. Hyperscalers are large-scale data centres that specialize in delivering large amounts of computing power and storage capacity. Some estimates are calling for a compound annual growth rate (CAGR) in hyperscalers of north of 30% from 2023 to 2028. For its part, Brookfield is investing in this high-growth area and securing itself a position in this space.
Brookfield is also increasingly positioning itself to benefit from the rapidly accelerating demand for electricity. The company is also focusing its investments in this space, investing in natural gas, renewables, and liquified natural gas infrastructure.
The bottom line
Brookfield Infrastructure Partners is one infrastructure investment that is increasingly well-positioned for the next generation of infrastructure needs. The company continues to monetize its more mature assets in order to fully take advantage of the new trends that are shaping the infrastructure industry for years to come.
For investors, we can get this, plus a dividend that has a strong history of growth and consistency. In fact, it’s up 252% since 2010, and the current yield is more than 5%.
