May usually creates a good window for long-term investors. Fortunately, there’s no shortage of great options on the market this month. Among those options, there are two long-term buying opportunities to consider now.
Both companies generate steady cash, offer defensive appeal, and still have room to grow over the long haul. Here’s a look at both of those long-term buying opportunities.
Source: Getty Images
Opportunity #1: Brookfield Infrastructure Corporation
The first of two long-term buying opportunities on the market right now is Brookfield Infrastructure Corporation (TSX: BIPC). Brookfield Infrastructure owns and operates essential infrastructure assets around the world.
That setup gives investors exposure to essential infrastructure assets like utilities, transport networks, data systems, and midstream energy. The sheer necessity of these assets makes Brookfield Infrastructure a defensive holding that’s diversified on a global scale.
The company’s global diversification reduces overall risk and positions it to benefit from long‑term trends. Specifically, that includes digitalization, population growth, and rising energy demand.
More importantly, those global assets generate stable, recurring cash flows because they are regulated or backed by long‑term contracts. In fact, many of Brookfield Infrastructure’s revenue streams are indexed to inflation, which helps support steady cash‑flow growth.
Turning to income, Brookfield Infrastructure has a strong track record of raising its dividend. As of the time of writing, Brookfield Infrastructure offers a yield of 4.5%. This furthers the case as one of the great long-term buying opportunities on the market right now.
Opportunity #2: WSP Global
The second of the long-term buying opportunities for investors right now is with WSP Global (TSX: WSP). For those unfamiliar with the stock, WSP Global is one of the world’s leading engineering and consulting firms. The company has a presence across infrastructure, environmental services, transportation, and climate‑related projects.
In short, WSP Global is a different type of infrastructure company. Instead of owning the roads, utilities or ports like Brookfield Infrastructure, WSP Global provides the engineering and consulting services to build and manage those assets around the world.
That high‑margin consulting model and recurring revenue base give the company exposure to long-duration projects around the world. Adding to that appeal is the company’s disciplined acquisition strategy.
Prospective investors should note that WSP Global has managed to expand its global footprint while maintaining strong integration execution over the years. This has allowed the company to scale efficiently.
That puts WSP Global in a strong spot to benefit from long-term trends like infrastructure renewal, climate transition work, and environmental remediation. With governments and corporations increasing investment in sustainability and infrastructure, this makes it an ideal time to consider WSP Global as one of the long-term buying opportunities for any portfolio.
The bottom line on these long-term buying opportunities
No stock is without risk, and that includes otherwise defensive picks such as the two stocks mentioned above. Both stocks offer strong growth and exposure to defensive sectors of the market that can weather different market cycles.
For long-term investors looking to build wealth, both Brookfield Infrastructure and WSP Global make a strong case for a spot in any well-diversified portfolio.
