Brookfield Infrastructure Partners (TSX: BIP.UN) currently yields 4.9%, but that’s not the only reason Motley Fool Canada’s Iain Butler thinks it could be a smart stock to buy now. Watch the video to learn more. Prefer to read? There’s a transcript below.
Nick Sciple: I’m Motley Fool Canada Senior Analyst Nick Sciple, and this is “The Five-Minute Major,” here to make you a smarter investor in about five minutes. Interested in more stock ideas from us, or even formal recommendations? Click the icon in the upper right corner for more.
Today on “The Five-Minute Major,” we’ll be discussing Brookfield Infrastructure and why it’s one of the top stocks on our radar this month in October 2025. My guest today to help me do that is Motley Fool Canada Chief Investment Officer Iain Butler. Iain, thanks for joining me.
Iain Butler: Great to be here, as always, Nick.
Nick: For the uninitiated, Iain, what is Brookfield Infrastructure? What does the company do?
What does BIP do?
Iain: Brookfield Infrastructure is but one — I like to use the term — “tentacle” in the Brookfield empire. At its core, Brookfield Infrastructure is one of the largest owners and operators of critical global infrastructure networks that exists. It owns essential backbone assets to the global economy, and I’m talking about long-life, high-quality assets that provide essential services, like utilities, transport, toll roads, data infrastructure. We’re talking pipelines, transport natural gas, and the data centres that are in the news every day these days. So, Brookfield Infrastructure is a very critical component of the global economy. It’s a business that’s diversified across four segments. It owns utilities. Regulated businesses are included in this segment, like electricity transmission, natural gas distribution, all of which generate very stable and predictable cash flows.
There’s also the components of transportation, midstream energy — which is pipelines — and again, data infrastructure. We’re talking rail lines, ports, natural gas pipelines, and again, the growing portfolio of data infrastructure, which includes cell towers as well, which is always an interesting asset.
All of this is bundled up into a package, but overarching this package of assets — a highly unique collection of assets, I’ll add — is the Brookfield strategy, and Brookfield’s strategy throughout the empire is to acquire assets on a value basis, and actively manage them. Brookfield is actually an operator of these assets, which tends to set them apart in a world where there’s financial owners of these things, but not necessarily operators. Brookfield combines them both, and they tend to buy these assets on the relative cheap. They do have some turnover in their portfolio, so they’ll pick something up, they’ll fix it up, operate it for a spell, and then sell it for a premium price. So, you get the steady income component that the assets provide, and you get a sort of a more active management strategy later on top of that.
Which is attractive.
Nick: Yeah, you think about these infrastructure assets, really important at all times to providing the backbone to our economy and what we need to maintain growth. When we talk about right now, here as we sit in October 2025, why should folks be excited about this business and the stock behind it?
Is Brookfield Infrastructure a good stock to buy?
Iain: One of the coolest things about Brookfield Infrastructure is that it’s publicly available to investors like you, me, and everyone watching this video. Historically, these are the kinds of assets that are owned by the likes of governments, sovereign wealth funds and other institutional investors, like pension funds or life insurance companies, companies with long life liabilities. You and I historically have not had access to own a toll road or a port or a private rail line, but Brookfield and others have really changed this game and cracked this niche open for our portfolios, and our portfolios are better off for it. But speaking to Brookfield Infrastructure specifically, the business is exceptionally well-positioned to benefit from three of the biggest global trends today. These are digitalization, decarbonization, and deglobalization. Massive capital investment is needed for data centres, renewable energy transmission, and the onshoring of critical supply chains, and Brookfield is a direct beneficiary of this spending.
Another point here is that in the current economic environment, Brookfield Infrastructure offers inflation-protected cash flows. It’s locked in with long-life contracts, and these contracts tend to move with inflation, so you don’t get an erosion of your value the longer you hold it.
Finally, it pays an attractive dividend, a dividend that offers a 4.9% yield, and management has stated a goal of delivering 5% to 9% annual growth, and this is something that they have stuck to over as long as I’ve followed this company. So, this is a reliable dividend grower to go along with the current attractive yield. Again, we’ll go back to that overarching value strategy that Brookfield offers, where you’re getting some portfolio turnover that’s going to add value along the way.
Nick: Yes, you got critical infrastructure, well-managed by a great management team, in a market environment where demand for those sorts of things is going up.
Also in a macroeconomic environment where inflation-protected cash flow is probably more attractive today than at least five and 10 years in the past. Iain, thanks so much for joining us for this edition of “The Five-Minute Major.” Hope to see everybody next time.
Iain Butler: Fool on.
