Picture one Tax-Free Savings Account (TFSA) helping cover an entire year of utility bills — all while the investment underneath it keeps owning power networks, toll roads, pipelines, railcars, and data centres around the world. Pretty amazing, right? For a Canadian who has accumulated the full $109,000 of TFSA room since 2009, a 4.7% yield could generate roughly $5,100 in annual tax-free income.
Of course, that account wouldn’t need to remain frozen in place, either. Reinvesting the distributions could purchase more units every quarter, while future increases could gradually turn today’s income into a much larger retirement paycheque. So, what’s this magical stock that could get you there?
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One stock; many businesses
Placing an entire account into one investment usually creates unnecessary risk. A dividend cut, management mistake, or industry downturn could damage both the income and the account balance at once.
If I had to choose one holding, though, I’d want it to behave more like a portfolio than a single company. That means several industries, multiple countries, contracted revenue, and a long record of raising distributions.
Those requirements lead to Brookfield Infrastructure Partners (TSX:BIP.UN). The infrastructure giant owns utilities, transportation networks, midstream assets, data centres, fibre networks, and other essential systems across the Americas, Europe, and Asia Pacific.
Cash flow built to last
Much of BIP stock’S revenue comes from regulated rates or long-term contracts. Customers continue using electricity networks, ports, pipelines, and communications infrastructure through strong economies and weak ones, giving the business more stability than a typical cyclical stock.
That stability showed during the first quarter, when funds from operations (FFO) per unit rose 10% to US$0.90. BIP stock commissioned more than US$1.7 billion of projects from its backlog over the previous year, helping existing operations produce growth before acquisitions entered the picture.
The company then turns mature assets into fresh investment capital. BIP stock secured nearly US$1 billion from asset sales and partnerships early in 2026, allowing it to fund new projects without depending entirely on debt or issuing more units.
AI needs infrastructure
That recycled capital can now chase one of the largest infrastructure opportunities in decades. Artificial intelligence (AI) requires data centres, fibre networks, reliable electricity, cooling systems, and backup generation long before anyone asks a chatbot to write another questionable wedding speech.
BIP stock’s data-segment FFO jumped 46% during the first quarter as new fibre and data centre investments contributed. Its US$5 billion partnership with Bloom Energy also aims to install up to one gigawatt of behind-the-meter generation, helping data centre customers secure power without waiting years for grid connections.
That growth supports an income record investors can already see. BIP stock raised its quarterly distribution 6% for 2026, marking its 17th consecutive annual increase, and management continues targeting 5% to 9% yearly growth.
Considerations
Investment income and withdrawals generally remain free from Canadian tax inside a TFSA. That shelter allows every distribution to remain available for spending or reinvestment instead of losing part of the payment at tax time.
BIP stock recently traded near $54.65, placing its yield around 4.7%. The payout gets declared in U.S. dollars, so Canadian payments can fluctuate with exchange rates, yet that currency exposure also adds another layer of diversification.
That said, BIP stock uses substantial debt across its infrastructure portfolio, leaving results sensitive to refinancing costs and interest rates. Acquisitions, construction delays, currency movements, and weaker economic activity could also pressure cash flow.
Those risks mean I’d still prefer BIP stock as the largest part of a diversified collection of Canadian dividend stocks, not literally every dollar for every investor. Yet its global reach makes the concentration far less extreme than owning one bank, retailer, or energy producer.
Bottom line
Brookfield Infrastructure combines a 4.7% yield with essential assets, growing digital exposure, and 17 consecutive annual distribution increases. Investors who keep reinvesting could let today’s infrastructure income compound alongside the power and data demand shaping the decades ahead.
