I have been a long-time holder of Brookfield Infrastructure Partners L.P. (TSX: BIP.UN), and it remains one of the few Canadian stocks I simply refuse to sell. In a market filled with noise, speculation, and short-term thinking, this is a business that rewards patience — and does so consistently.
Source: Getty Images
A proven dividend growth machine
One of the biggest reasons I continue to hold is its ability to grow its cash distribution year after year. Investors who bought units back in 2009 started with a yield of roughly 6%. Today, that same investment would be generating a yield on cost of over 30%. That’s the power of disciplined dividend growth combined with time.
After accounting for currency fluctuations, the numbers are even more compelling. Because the partnership earns more than 80% of its funds from operations (FFO) in U.S. dollars and pays distributions in U.S. dollars, Canadian investors typically benefit from a favourable exchange rate over time. Even assuming a super-conservative exchange rate of parity, long-term holders from 2009 are effectively earning north of 20% annually on their original investment from distributions alone.
More importantly, this isn’t a one-off success story. Management targets 5–9% annual distribution growth supported by 10%-plus FFO per unit growth, all while maintaining a prudent payout ratio of 60–70%. That combination provides both income today and growth for tomorrow.
Built on essential, resilient assets
Brookfield Infrastructure Partners owns a globally diversified portfolio of high-quality infrastructure assets — businesses that communities depend on regardless of economic conditions. Its cash flows are largely regulated or backed by long-term contracts, with a weighted-average duration of about nine years. This creates stability that many companies simply cannot match.
The portfolio spans multiple sectors: utilities account for 25% of FFO, transport 37%, energy infrastructure 22%, and data infrastructure 16%. This diversification reduces risk while allowing the company to benefit from multiple long-term trends.
What’s most exciting today is its growing exposure to data infrastructure. As of the end of 2025, the company had a capital backlog of approximately US$9.2 billion, up 18% year over year. Notably, 78% of that backlog is tied to data infrastructure projects — fuelled by the rapid expansion of artificial intelligence and data centres. This positions the partnership to capture meaningful growth in the years ahead.
Why I continue to buy over time
At around $50.75 per unit at the time of writing, the stock yields about 5%, which is attractive on its own. Analysts also suggest it trades at a discount, with roughly 15% near-term upside potential. But focusing only on short-term price appreciation misses the bigger picture.
The real opportunity lies in continuing to build a position over time, especially during market pullbacks. By steadily adding to a high-quality dividend grower like this, investors can create a compounding income stream that grows faster than inflation.
Instead of chasing the next hot stock, I prefer owning businesses that steadily increase my income regardless of market conditions. Brookfield Infrastructure Partners fits that philosophy perfectly.
Investor takeaway
Brookfield Infrastructure Partners is a rare combination of stability, growth, and income. Its track record of consistent distribution increases, resilient global infrastructure assets, and strong future growth pipeline make it a cornerstone long-term holding.
While long-term investors’ yield on costs could be impressive, the real value lies in continuing to own — and even add to — this stock over time. For investors focused on building reliable, growing income, this is one Canadian stock that’s simply too good to sell.
