Inflation may be cooling slightly, but most Canadians are still feeling the squeeze. The April 2025 Consumer Price Index (CPI) data showed consumer prices rose 2.7% year over year, down from 2.9% in March. While that’s a step in the right direction, core inflation remains stubbornly above 3%. Everyday essentials like rent, transportation, and food continue to weigh heavily on household budgets. For investors, that kind of environment calls for steady, inflation-resistant income. And if you’re looking to put $5,000 to work on the TSX today, Brookfield Infrastructure Partners (TSX:BIP.UN) is one of the most attractive options.
About BIP
Brookfield Infrastructure owns and operates critical infrastructure assets across the globe. That includes everything from regulated utilities and gas pipelines to toll roads, rail networks, and data centres. These are the kinds of services people rely on, no matter what the economy is doing. And for investors, that means consistent revenue, strong pricing power, and built-in protection against inflation.
In its most recent earnings report, Brookfield Infrastructure delivered strong results. For the first quarter of 2025, it posted US$646 million in funds from operations, or US$0.82 per unit. That marked a 5% increase from the same period last year. The results were driven by inflation-indexed growth in its utilities segment and recent project completions in both data and transport. While net income came in lower at US$125 million due to non-cash valuation changes, the core operating performance remained solid and dependable.
The company’s revenue streams are heavily indexed to inflation. That means when prices go up, Brookfield often gets to charge more, especially across its regulated utilities. That’s a significant advantage in a high-cost environment. It also justifies the dividend stock’s most recent move: increasing its quarterly distribution by 6%. That brings its annual payout to roughly US$1.72 per unit, which translates to a yield of about 4.6% at current prices.
Creating cash flow
For Canadian investors, that means a $5,000 investment in Brookfield Infrastructure could yield around $180 per year in cash. With the unit price hovering around $45.53, you could purchase approximately 109 units. It’s not just a decent return, it’s one that tends to grow over time. The dividend stock has a history of raising distributions each year, and management has reaffirmed its commitment to long-term growth through continued capital investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| BIP.UN | $45.53 | 109 | $1.64 annual | $178.76 | Quarterly | $4,963.77 |
That capital is being put to work right now. Brookfield is in the process of acquiring Colonial Enterprises, a large U.S. pipeline operator, for about US$9 billion. Once completed, this deal will significantly boost its midstream energy footprint. At the same time, it continues to sell off mature assets to recycle capital into new opportunities. In the first quarter alone, the dividend stock raised over US$1.4 billion through asset sales, strengthening its balance sheet and providing flexibility for future investments.
Even with some debt on the books, Brookfield Infrastructure maintains investment-grade credit ratings and manages interest rate risk carefully. It refinances prudently and takes advantage of long-term, fixed-rate structures where possible. While infrastructure stocks can be sensitive to rising interest rates, Brookfield’s cash flow reliability and inflation-linked contracts help offset those pressures.
Bottom line
Of course, no dividend stock is without risk. Currency swings can affect reported earnings, and regulatory changes could impact future rate increases. But Brookfield’s globally diversified portfolio and disciplined approach help manage those challenges effectively. It’s also worth noting that many of its services, like energy transmission, transportation, and data, are not optional. That makes its income more durable than many consumer-facing businesses.
If you’re sitting on $5,000 and looking for where to invest in the TSX today, Brookfield Infrastructure is one of the most compelling options out there. It combines a strong, inflation-resistant business model with a rising dividend, ongoing growth initiatives, and solid long-term performance. In a market that’s still full of uncertainty, this is the kind of dependable income generator that can anchor a portfolio for years to come.
