Brookfield Infrastructure Pursues Growth with Capital Recycling

Brookfield Infrastructure continues to thrive with sustained dividend growth. The company’s adept capital recycling strategy has enabled significant investment opportunities, bolstering prospects for the future.

Date: 24-03-2025

AI Rating: 7

Dividend Growth
Brookfield Infrastructure has shown a notable commitment to returning value to shareholders through dividends, increasing its payout for 16 consecutive years with a 9% compound annual growth rate. This attractive yield of 4.9% makes it appealing for income-focused investors.

Capital Recycling Strategy
The company's approach to capital recycling plays a crucial role in its ability to fund new investments and accelerate growth. By liquidating mature assets, Brookfield generates cash that allows for reinvestment into higher return opportunities. A successful example includes the exit from the Natural Gas Pipeline Company (NGPL), where they realized substantial returns, indicating effective management of assets.

Future Growth Potential
Brookfield's ongoing focus on capital recycling could drive further growth, as indicated by its expectation of earning an internal rate of return (IRR) of 12% to 15%. The ability to achieve 6% to 9% annual growth in funds from operations (FFO) per share will further strengthen its financial standing.

Investment Outlook
With its dividend policy supported by underlying growth strategies, Brookfield is positioned for sustainable expansion. The indication of total returns in the mid-teens highlights its potential as a long-term investment option.

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