Infrastructure stocks have long been considered some of the most reliable investments that Canadian investors can buy.
That’s because these companies operate assets that economies depend on every single day, from energy pipelines and telecommunications networks to waste management systems and transportation infrastructure.
Many of these infrastructure stocks are especially attractive for long-term investors because they tend to generate steady and predictable cash flow since demand for their services rarely disappears.
Even during economic slowdowns, people still need energy, internet access, transportation, essential municipal services and much more. As a result, many infrastructure companies benefit from long-term contracts, regulated pricing, and stable revenue streams that make their earnings far more predictable than those of many other industries.
So not only are many of these stocks reliable, core portfolio stocks, but with the ongoing infrastructure boom, whereby governments around the world are committing billions of dollars to upgrading aging infrastructure, expanding digital networks, and modernizing energy systems, plenty of Canadian stocks are perfectly positioned to take advantage of this demand.
So, if you’re looking for reliable Canadian infrastructure stocks to buy now and hold for years to come, here are three top picks to consider today.
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One of the best defensive growth stocks on the TSX
When it comes to finding stocks that are both highly defensive and offer consistent growth potential, one name that constantly stands out is Brookfield Infrastructure Partners (TSX: BIP.UN).
In fact, Brookfield Infrastructure is one of the best and most direct ways investors can gain exposure to infrastructure assets around the world.
The company owns and operates a wide range of essential infrastructure, including utilities, pipelines, transportation assets, and data infrastructure. These are the types of assets that businesses, governments, and consumers rely on every day.
It’s not just the assets that BIP owns, though. It’s also the diversification of its portfolio. The Canadian company operates assets across multiple sectors and geographic regions, which helps reduce risk while still allowing it to benefit from global infrastructure demand.
Furthermore, Brookfield’s management team is consistently finding new projects to acquire to help expand its portfolio. That way, it is less focused on building projects from scratch,
Brookfield can acquire existing infrastructure assets that already generate reliable cash flow. Additionally, it then improves and expands those assets over time to increase profitability, which is why it’s such a reliable defensive growth stock.
Therefore, if you’re looking for a reliable Canadian stock to buy as infrastructure investment remains a major priority worldwide, Brookfield Infrastructure is well-positioned to continue benefiting for years to come.
Two high-quality Canadian infrastructure stocks to buy now
In addition to Brookfield Infrastructure, two more top Canadian stocks to add to your watchlist today are BCE (TSX: BCE) and AltaGas (TSX: ALA).
BCE
When it comes to reliable cash cows in the infrastructure sector, BCE is one of the best stocks dividend investors can buy. In fact, telecommunications networks have increasingly become one of the most important forms of modern infrastructure.
As the digital economy continues to expand, reliable connectivity has become just as essential as traditional infrastructure. And with BCE being one of Canada’s largest telecommunications providers, the stock is perfectly positioned for years of growth.
For years now, BCE and its peers have spent billions of dollars investing heavily in fibre-to-the-home networks and 5G infrastructure to strengthen their position across the country.
And with nearly all of that spending in the rear view now, as well as BCE’s dividend being much more sustainable going forward, it’s perfectly positioned to grow both its free cash flow and distribution for years to come.
Therefore, while it offers a yield of roughly 5%, there’s no question it’s one of the best Canadian infrastructure stocks to buy now.
Altgas
Meanwhile, AltaGas is a stock to watch since it operates a mix of utility and midstream infrastructure assets, but it’s the midstream segment in particular that offers significant long-term growth potential.
Canada has been pushing to expand its energy export capacity, especially to the West Coast, where resources can be shipped to Asian markets. AltaGas sits right in the middle of that opportunity through its natural gas liquids infrastructure and export facilities.
At the same time, AltaGas still benefits from its regulated utility operations, which generate steady and predictable cash flow.
So, if you’re looking for reliable Canadian infrastructure stocks that you can hold for years to come, AltaGas is certainly one you’ll want to add to your watchlist.
