Even After A Big Rally, Brookfield Infrastructure Is One Of The Best High-Yield SWANs For The Next Decade by Brad Thomas


  • Brookfield Infrastructure was created as a fundraising tool to invest opportunistically in global infrastructure.
  • There's no better stock to own if you want to profit from various mega-trends around the world.
  • We fully expect Brookfield Infrastructure to deliver management's goal of 12% to 15% CAGR total returns. Not just over this coming decade but possibly for the next 50 years.
  • This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Get started today »

This article was co-produced by Dividend Sensei and edited by Brad Thomas.

Allocations to listed infrastructure have surged over the last few years thanks in large part to their growing demand for predictable cash flows and attractive returns.

According to Cohen & Steers "the global infrastructure investment opportunity is driven primarily by two distinct trends: The need to upgrade aging infrastructure systems in developed economies after decades of neglect, and the demographically fueled growth in new infrastructure associated with bringing higher standards of living to emerging regions."

Accordingly, we consider infrastructure a powerful complement to our best-in-class REIT research. Although we cover a number of infrastructure REITs like American Tower (AMT) and Crown Castle (CCI), we have broadened our coverage spectrum to include energy and transportation companies.

Publicly-traded markets offer an "increasingly popular way to access infrastructure assets, combining key investment attributes of private infrastructure with the benefits of liquidity and daily pricing." Today we decided to provide you readers with research on one of the best-in-class companies in global infrastructure.


Brookfield Infrastructure Partners (BIP) and its upcoming corporate version (BIPC) represent two of the best ways to profit from the single biggest economic trend in human history - global infrastructure.

(Source: Ycharts)

BIP managed to deliver more than 50% total returns last year, smashing the tech-heavy S&P 500 and Nasdaq.

But that was starting from such a low valuation that this rapidly-growing infrastructure LP remains reasonably priced today. Management's official policy to strive to deliver 12% to 15% CAGR total returns for investors over time and its track record since IPO has been far better.

BIP Total Return Since 2009

(Source: Portfolio Visualizer) portfolio 1 = BIP

BIP has delivered double the low end of management's total return guidance over the past 11 years, though that's starting from January 2009's very low valuations. Still, there's no denying that Brookfield knows how to compound safe income and wealth at an impressive clip.

So let's look at the three reasons why Brookfield Infrastructure Partners (and BIPC) are likely to represent two of the best high-yield sleep well at night or SWAN investments of the next decade.

That includes a reasonable valuation from which the stock could deliver about 15% CAGR total returns over the next two years.

...Originally Posted On Seeking Alpha

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Comments 1

The pull back was an opportunity to get long.

Posted via Steemleo | A Decentralized Community for Investors

04.01.2020 15:32