Could Buying Brookfield Infrastructure Stock Set You Up For Life?

Brookfield Infrastructure stock is yielding 5% and heading into a strong growth period driven by increasing infrastructure investments.

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Key Points
  • • Brookfield Infrastructure Partners (BIP.UN) is positioned to capitalize on three major global trends – digitization, decarbonization, and deglobalization – that are driving massive infrastructure investment needs worldwide.
  • • The company's scale and access to $6 billion in liquidity through the broader Brookfield network gives it unique advantages to secure large, profitable infrastructure projects with long-term contracts.
  • • With 17 consecutive years of distribution increases and a healthy 5.02% yield, BIP.UN offers both income and growth potential while trading below $50 per share.

There are many different ways to help set yourself up financially. Some of these ways are hard and require a lot of work. Others are too expensive. Brookfield Infrastructure Partners LP (TSX: BIP.UN) is a stock worth considering for this purpose.

Let’s look into why Brookfield Infrastructure stock is a stock to buy and hold for the long term.

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Source: Getty Images

Brookfield – At the right place at the right time

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. As you can see from BIP.UN’s stock price graph below, it has been a steady performer.

There are three major trends that are happening right now – digitization, decarbonization, and deglobalization. As per Brookfield’s management, Brookfield is “benefitting from an infrastructure investment super-cycle that’s expanding in both scope and scale.”

Industries are rapidly expanding in response to these trends. Let’s take the artificial intelligence, or AI, boom. This rapid rise in connected machines and AI-enabled systems and processes will only be possible if the infrastructure is there. This will require the building and maintenance of numerous large data centres in the different hubs of the world.

Unmatched access to funds

Brookfield Infrastructure Partners is a global organization. In fact, it’s one of the few pure-play, publicly-traded, global infrastructure vehicles. As industries expand in response to these major trends, the infrastructure required will be required globally. This is a risky and expensive proposition.

As part of the broader Brookfield company network, Brookfield Infrastructure Partners has access to a leading asset management group. This leads to origination opportunities and participation in consortiums that help secure contracts and funding.

At this time, Brookfield Infrastructure has record liquidity of $6 billion, leaving it armed with the flexibility to participate in the expected growth.

Brookfield – A history of excellence

It is precisely Brookfield’s track record and operating practices that make it a stock to own for the long run – a stock that will set you up for life.

For example, all of Brookfield’s development projects are underpinned by long-term contracts – there is no speculative building. In addition to this, Brookfield deals with the strongest investment grade parties. Also, the company focuses on top-tier locations, and finally, it employs a self-funded model that locks in attractive economics.

Also, during the fourth quarter of 2025, Brookfield showcased its strength as cash flows and earnings increased significantly. This led to a 6% distribution increase, which marked the 17th consecutive year of distribution increases of at least 5%. Brookfield’s payout ratio currently stands at a very healthy 66%.

What we want is stability, growth, and resilience. Brookfield Infrastructure Partners has all of that. All of this makes Brookfield trustworthy of shareholders’ investment.

The bottom line

Brookfield Infrastructure is a top-quality stock that has the benefit of scale and strong access to capital. This will enable it to benefit from the strong long-term infrastructure trends that are in play today.

BIP.UN’s stock price is trading below $50 and is yielding a very generous 5%.

Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

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