Yes, BIP stock is a solid buy right now. Canada and other economies are pouring capital into essential infrastructure, and Brookfield Infrastructure Partners (TSX:BIP.UN) is one of the best-positioned vehicles to capture that spending.
With 17 consecutive years of distribution increases, a 10% FFO (funds from operations) growth target, and a US$6 billion liquidity position, this is a TSX dividend stock built for patient, long-term investors.
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The bull case for the TSX stock
Government and corporate investment in infrastructure is accelerating on multiple fronts. Digitalization, decarbonization, and deglobalization are creating a sustained wave of demand for the essential networks that keep modern economies running. These include data centres, power grids, pipelines, toll roads, and rail networks.
Brookfield Infrastructure is positioned at the center of all three of these trends. The company owns and operates a globally diversified portfolio of high-quality utilities, transport, midstream, and data assets across roughly 25 countries. Its business is designed to generate reliable, inflation-protected cash flows that grow steadily over time.
The company targets annual FFO per unit growth of more than 10%, annual distribution growth of 5% to 9%, and a payout ratio of 60% to 70%. Moreover, new investments are targeted to generate internal rates of return of 12% to 15%.
A solid performance in 2025
In 2025, BIP reported FFO of US$2.6 billion or US$3.32 per share, an increase of 10% year over year. The data centre business generated FFO of US$502 million, up 50% year over year.
The growth was driven by new investments that closed over the prior 12 months, including a U.S. bulk fibre network that is now fully contributing to earnings, as well as the commissioning of 220 megawatts of capacity at its hyperscale data centres.
- The transport segment generated FFO of US$1.1 billion, with rail and toll road volumes and rates each growing in the low single digits.
- The midstream segment grew FFO by 7%, supported by higher volumes at its Canadian natural gas gathering and processing operations.
- BIP ended 2025 with record liquidity of US$6 billion, including nearly US$3 billion at the corporate level.
- Its capital structure is more than 90% fixed rate with an average term of eight years, which limits near-term refinancing risk.
The AI moat
Around 60% of BIP’s FFO is tied to its data, midstream, and utility businesses. In 2025, the company executed agreements for approximately 230 megawatts of behind-the-meter power projects at data centres and AI facilities under a framework agreement targeting up to 1 gigawatt of total capacity.
Its data centre development pipeline stands at approximately 3.6 gigawatts, including 1.2 gigawatts of operating capacity and a contracted backlog of 1.1 gigawatts. Every development project is underpinned by long-term contracts, with no cancellation clauses and investment-grade counterparties.
The board also approved a 6% increase in quarterly distributions in 2026, bringing the annualized payout to US$1.82 per unit. It was the 17th consecutive year of distribution increases of at least 5%.
Analysts forecast the FFO to expand to US$4.69 per share in 2028. Given a 60% payout ratio, the annual dividend could increase to US$2.81 per share, translating to a forward yield of over 7%.
Based on consensus price targets, the TSX dividend stock trades at a 15% discount in April 2026. If we adjust for dividends, potential cumulative returns are closer to 20%.
