Infrastructure is the backbone of so much in our everyday life. Whether it’s building the roads you drive on to work, the shower you took this morning, or the phone you call your mother on (seriously, call your mom), it’s literally everywhere.
And yet because of its foundational role, the investment opportunities with infrastructure seem to fall into the background. Well, today we’re bringing it to the forefront with Brookfield Infrastructure Partners LP (TSX:BIP.UN). This winner has long been a top-notch choice for investors, and that remains true today. So let’s look at why Canadians might want to consider this dividend stock on the TSX today.
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Into earnings
BIP recently showed a strong second quarter for 2025, making it a promising investment for new investors. The company reported net income of $60 million for the second quarter, rising from around $8 million during the same period last year. The boost came from effective capital recycling activities, as well as strong operational performance.
Furthermore, BIP reported funds from operations (FFO) rising 5% to $638 million, demonstrating just how strong cash generation and efficient operations were. This increase came mainly from strong organic growth and recent acquisitions contributing to earnings, as well as inflation-adjusted increases amongst utilities and transport.
More to come
Yet if you think that’s all she wrote, BIP also reported more in the works. BIP recently executed three major acquisitions for the current year, including a leading fibre network company, Hotwire. It also acquired a substantial railcar leasing platform and the Colonial pipeline system. These are all part of BIP’s strategy to not just strengthen its portfolio in high-performing markets like the U.S., but position itself for future revenue generation.
The capital recycling strategy, in particular, is a great reason to consider the dividend stock. The company secured about $2.4 billion from asset sales recently. This cash generation bolsters liquidity, currently over $5.7 billion, as well as facilitates future investments through growth opportunities.
Bottom line
Now there are a few items for investors to consider. For instance, the company announced an increase in its dividend of 6% to $0.43 per quarter. These consistent dividend increases are certainly reasons enough to hold on. What’s more, its capital deployment ensures high-risk-adjusted returns. Investing in areas like data, transport, and midstream infrastructure provides stable growth for investors – investments that will continue to be around for decades to come. Right now, the dividend stock could bring in annual dividend income alone of $388.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BIP.UN | $42.72 | 164 | $2.37 | $388.68 | Quarterly | $7,008.08 |
What’s more, despite higher borrowing costs and even foreign exchange impact, BIP manages its finances well. So well that its acquisitions and growth just keep on coming. Overall, BIP is a top choice for today’s investor. It’s simply a top choice for investors looking for income that lasts not just next year, but for decades to come. And one that Canadians not only won’t regret, but will likely wish they had bought even sooner.
