Latest news with #BrookfieldInfrastructure
Globe and Mail
21 hours ago
- Business
- Globe and Mail
Got $300 to Invest This August? Buy These Dividend Stocks and Never Look Back.
Key Points Brookfield Infrastructure owns a large, global collection of vital, cash-generating assets. Enterprise Products offers a high yield and steady dividend growth. Clearway Energy has visible growth through 2027 (and plenty of power to continue growing beyond that year). 10 stocks we like better than Enterprise Products Partners › Some dividend stocks are so reliable that you don't need to give them much thought. You can just buy shares and sit back and watch the dividend income consistently flow into your account. Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Enterprise Products Partners (NYSE: EPD), and Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN) stand out to a few contributing analysts for their resilient dividend payments. Here's why they think you can park a few hundred dollars into these excellent dividend stocks this August and never look back. Brookfield Infrastructure is focused on cash cows Reuben Gregg Brewer (Brookfield Infrastructure): A $300 investment will get you roughly seven shares of Brookfield Infrastructure Corp. and a roughly 4.4% dividend yield. Or it will get you around nine shares of Brookfield Infrastructure Partners and a 5.4% yield. They represent the same entity, with the only difference being the structure. The corporate share class is more popular, which is why it trades at a higher price and, thus, has a lower yield. That said, Brookfield Infrastructure Partners, the older of the two classes, has increased its distribution annually for 18 years. Brookfield Infrastructure owns a globally diversified collection of infrastructure assets. There is a lot going on here, with the portfolio containing transportation and distribution utility assets, railroads, toll roads, transportation terminals, midstream assets (such as pipelines), and data transmission and storage assets. That's a lot of ground, and it positions Brookfield Infrastructure to produce reliable, recurring revenue backed by necessity businesses. The goal is to grow funds from operations by around 10% a year, with distributions pegged to grow between 5% and 9% a year. Brookfield Infrastructure is an active portfolio manager, however, constantly buying and selling assets. The big-picture plan is to acquire infrastructure assets while they are cheap, improve the value of assets via capital investment and astute operations, and then, if a good price can be had, sell the assets and repeat the process. Given the distribution record, this has been a solid playbook. If you are looking for a high yield backed by hard assets, this could be the pick for you in August. This 7% yield looks safe Neha Chamaria (Enterprise Products Partners): Enterprise Products Partners yields a solid 7%. However, that's not the reason to buy this dividend stock. It is the dividend track record, growth, and stability that make it one of the top 10 dividend stocks to buy now. Enterprise Products has increased its dividend for 27 consecutive years now. It's an oil and gas company, so one would expect Enterprise Products' cash flows to be volatile. That's not the case, though. As a pipeline company, Enterprise Products enjoys relatively inelastic demand, as it provides services under long-term contracts. While that ensures steady cash flows, the company prioritizes reinvesting into growth to grow its cash flows while returning capital to its shareholders. The judicious mix has made Enterprise Products' dividends very reliable over the years. Better yet, its dividends have grown consistently over the years, backed by growing cash flows. For instance, Enterprise Products' distributable cash flow (DCF) grew by 7% year over year in the second quarter. The company increased its dividend by 3.8%, and its DCF comfortably covered its dividend by 1.6 times. Management is excited about 2025 and beyond, as major projects worth $6 billion are expected to come online in the coming months, including a significant expansion of Enterprise Products' gas infrastructure in the Permian Basin. Meanwhile, Enterprise Products just struck a deal to acquire some of Occidental Petroleum 's natural gas-gathering systems in the Midland Basin. With $300 now, you can buy roughly nine shares of Enterprise Products Partners and enjoy its dividend growth and high yield, likely for years to come. Clear growth visibility through 2027 and beyond Matt DiLallo (Clearway Energy): Clearway Energy is a leading clean energy producer. The company operates a vast portfolio of wind, solar, energy storage, and natural gas assets. It sells the power generated by these clean energy assets under long-term contracts to utilities and large corporate customers. Those agreements provide it with stable, predictable cash flow, the bulk of which it pays to shareholders via dividends (nearly 6% current yield). At that rate, every $100 invested in Clearway would produce almost $6 of dividend income each year. The company uses its balance sheet flexibility and the cash it retains after paying dividends to invest in additional income-generating clean energy assets. Clearway has lined up several investments that provide it with significant visibility into its ability to grow its cash flow in the coming years. For example, it has agreed to invest in several wind repowering projects (replacing legacy turbines with larger ones that produce more power) it expects to complete in 2026 and 2027. It has also agreed to buy some renewable energy development projects as they enter commercial service over the next couple of years. Clearway's secured investments power its view that it can generate at least $2.50 per share of cash available for dividends (CAFD) in 2027 (up from $2.08 per share this year). That supports its plan to increase its dividend by 5% to 8% annually in the coming years. It recently raised its payment by another 1.6% to an annualized rate of $1.7824 per share. The company has an abundance of future growth opportunities, partly due to its strategic relationship with a leading renewable energy development company. It also has the financial capacity to continue making new investments. These factors drive its confidence that it can continue growing its CAFD and dividends per share at a rate of 5% to 8% annually, well beyond 2027. With visible growth through 2027 and more growth likely beyond that timeframe, you can confidently buy and hold Clearway for dividend income. Should you invest $1,000 in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
21 hours ago
- Business
- Yahoo
Got $300 to Invest This August? Buy These Dividend Stocks and Never Look Back.
Key Points Brookfield Infrastructure owns a large, global collection of vital, cash-generating assets. Enterprise Products offers a high yield and steady dividend growth. Clearway Energy has visible growth through 2027 (and plenty of power to continue growing beyond that year). 10 stocks we like better than Enterprise Products Partners › Some dividend stocks are so reliable that you don't need to give them much thought. You can just buy shares and sit back and watch the dividend income consistently flow into your account. Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Enterprise Products Partners (NYSE: EPD), and Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN) stand out to a few contributing analysts for their resilient dividend payments. Here's why they think you can park a few hundred dollars into these excellent dividend stocks this August and never look back. Brookfield Infrastructure is focused on cash cows Reuben Gregg Brewer (Brookfield Infrastructure): A $300 investment will get you roughly seven shares of Brookfield Infrastructure Corp. and a roughly 4.4% dividend yield. Or it will get you around nine shares of Brookfield Infrastructure Partners and a 5.4% yield. They represent the same entity, with the only difference being the structure. The corporate share class is more popular, which is why it trades at a higher price and, thus, has a lower yield. That said, Brookfield Infrastructure Partners, the older of the two classes, has increased its distribution annually for 18 years. Brookfield Infrastructure owns a globally diversified collection of infrastructure assets. There is a lot going on here, with the portfolio containing transportation and distribution utility assets, railroads, toll roads, transportation terminals, midstream assets (such as pipelines), and data transmission and storage assets. That's a lot of ground, and it positions Brookfield Infrastructure to produce reliable, recurring revenue backed by necessity businesses. The goal is to grow funds from operations by around 10% a year, with distributions pegged to grow between 5% and 9% a year. Brookfield Infrastructure is an active portfolio manager, however, constantly buying and selling assets. The big-picture plan is to acquire infrastructure assets while they are cheap, improve the value of assets via capital investment and astute operations, and then, if a good price can be had, sell the assets and repeat the process. Given the distribution record, this has been a solid playbook. If you are looking for a high yield backed by hard assets, this could be the pick for you in August. This 7% yield looks safe Neha Chamaria (Enterprise Products Partners): Enterprise Products Partners yields a solid 7%. However, that's not the reason to buy this dividend stock. It is the dividend track record, growth, and stability that make it one of the top 10 dividend stocks to buy now. Enterprise Products has increased its dividend for 27 consecutive years now. It's an oil and gas company, so one would expect Enterprise Products' cash flows to be volatile. That's not the case, though. As a pipeline company, Enterprise Products enjoys relatively inelastic demand, as it provides services under long-term contracts. While that ensures steady cash flows, the company prioritizes reinvesting into growth to grow its cash flows while returning capital to its shareholders. The judicious mix has made Enterprise Products' dividends very reliable over the years. Better yet, its dividends have grown consistently over the years, backed by growing cash flows. For instance, Enterprise Products' distributable cash flow (DCF) grew by 7% year over year in the second quarter. The company increased its dividend by 3.8%, and its DCF comfortably covered its dividend by 1.6 times. Management is excited about 2025 and beyond, as major projects worth $6 billion are expected to come online in the coming months, including a significant expansion of Enterprise Products' gas infrastructure in the Permian Basin. Meanwhile, Enterprise Products just struck a deal to acquire some of Occidental Petroleum's natural gas-gathering systems in the Midland Basin. With $300 now, you can buy roughly nine shares of Enterprise Products Partners and enjoy its dividend growth and high yield, likely for years to come. Clear growth visibility through 2027 and beyond Matt DiLallo (Clearway Energy): Clearway Energy is a leading clean energy producer. The company operates a vast portfolio of wind, solar, energy storage, and natural gas assets. It sells the power generated by these clean energy assets under long-term contracts to utilities and large corporate customers. Those agreements provide it with stable, predictable cash flow, the bulk of which it pays to shareholders via dividends (nearly 6% current yield). At that rate, every $100 invested in Clearway would produce almost $6 of dividend income each year. The company uses its balance sheet flexibility and the cash it retains after paying dividends to invest in additional income-generating clean energy assets. Clearway has lined up several investments that provide it with significant visibility into its ability to grow its cash flow in the coming years. For example, it has agreed to invest in several wind repowering projects (replacing legacy turbines with larger ones that produce more power) it expects to complete in 2026 and 2027. It has also agreed to buy some renewable energy development projects as they enter commercial service over the next couple of years. Clearway's secured investments power its view that it can generate at least $2.50 per share of cash available for dividends (CAFD) in 2027 (up from $2.08 per share this year). That supports its plan to increase its dividend by 5% to 8% annually in the coming years. It recently raised its payment by another 1.6% to an annualized rate of $1.7824 per share. The company has an abundance of future growth opportunities, partly due to its strategic relationship with a leading renewable energy development company. It also has the financial capacity to continue making new investments. These factors drive its confidence that it can continue growing its CAFD and dividends per share at a rate of 5% to 8% annually, well beyond 2027. With visible growth through 2027 and more growth likely beyond that timeframe, you can confidently buy and hold Clearway for dividend income. Should you buy stock in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Clearway Energy, and Enterprise Products Partners. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners, Enterprise Products Partners, and Occidental Petroleum. The Motley Fool has a disclosure policy. Got $300 to Invest This August? Buy These Dividend Stocks and Never Look Back. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
2 High-Yield Dividend Stocks You Can Buy With $100 Now and Hold at Least a Decade
Key Points Shares of Brookfield Infrastructure and Novo Nordisk offer an average yield that is more than triple the market average. Novo Nordisk lowered its forward outlook in response to a problem that has most likely been resolved already. Brookfield Infrastructure's pipelines and data centers aren't particularly thrilling, but they do generate predictable cash flows. 10 stocks we like better than Novo Nordisk › Despite a recent dip in response to unfavorable economic data, the stock market's bull run seems unstoppable. From April 4 through Aug. 8, the S&P 500 index shot up a whopping 25.9%. For dividend-seeking investors, a buoyant stock market can be a little annoying. Stock prices rising faster than profits means most dividend payers offer unattractive yields. The average yield from dividend payers in the benchmark S&P 500 index is an unattractive 1.2% at recent prices. Most dividend yields aren't particularly desirable right now, but there are still some underappreciated gems hiding in plain sight. Novo Nordisk (NYSE: NVO) and Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC) offer an average yield of 3.9% at recent prices. Plus, they could raise their payouts at a mid-single-digit percentage, or better, every year from now until you want to retire. You don't have to be wealthy to put your money to work with these stocks. At recent prices, $100 is enough to buy a share of both. Here's why that looks like a great idea for folks who would like to grow their passive income streams. Novo Nordisk From the end of 2023 through Aug. 7, shares of Novo Nordisk lost more than half their value. Earnings reported by the Denmark-headquartered company that markets Ozempic and Wegovy have performed much better than the stock. If we ignore currency exchange rates, U.S. investors who buy the stock at recent prices would receive a 3.44% yield if Novo Nordisk holds the payout flat. Holding dividend payments steady isn't in this company's nature. From 2020 through 2024, it raised annualized dividend payments by 120% in its native currency. Shares of this drugmaker have been under intense pressure since management lowered its sales outlook for 2025. On Aug. 6, the company told investors to expect revenue to rise between 8% and 14% this year. That's much slower than the 13% to 21% range management provided in May. On the bottom line, management lowered its operating earnings growth outlook to a range of between 10% and 16% this year. This is a slower rate of growth than we had been expecting, but it's still pretty good for an established pharmaceutical business. Shares of Novo Nordisk have been beaten down to just 14.1 times trailing earnings. This valuation implies growth at a low single-digit percentage over the long run. I'd argue that profit growth of around 10% annually seems far more likely. During its initial launch, Novo Nordisk failed to produce enough Wegovy to meet demand, which allowed independent compounding pharmacies to fill in the gap. The Food and Drug Administration declared an end to the Wegovy shortage in February. Compounding pharmacies that have been fighting the decision in U.S. courts without success are a headwind that seems likely to subside. Brookfield Infrastructure Even if you haven't heard of Brookfield Infrastructure, there's a good chance your employer relies on at least one of its assets. This subsidiary of Brookfield Asset Management owns and operates critical infrastructure networks that facilitate the flow of freight, passengers, data, water, and energy. Shares of Brookfield Infrastructure have fallen by about 15% over the past three years, but its dividend payout has risen by 18.5% over the same time frame. At recent prices, the stock offers an unusually large 4.3% dividend yield. Investing in pipelines, fiber optic cables, railways, data centers, toll roads, and telecom towers receives significantly less attention than big tech's investments in artificial intelligence (AI). I'd argue that this is one of the safest AI stocks you can buy now. Nobody knows which large language models will become the most popular over the long run, but we can be sure they will require heaps of energy and data transmission. Brookfield Infrastructure's portfolio includes assets that provide both. During the second quarter, Brookfield Infrastructure reported funds from operations (FFO), a proxy for earnings used to evaluate asset-heavy businesses, that rose 5% year over year to $0.81 per share. This is heaps more than it needs to meet a quarterly dividend payout currently set at $0.43 per share and raise it much further. Adding some shares to a diversified portfolio looks like a nearly surefire way to generate heaps of dividend income over the long run. Do the experts think Novo Nordisk is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Novo Nordisk make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.64%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Novo Nordisk. The Motley Fool has a disclosure policy. 2 High-Yield Dividend Stocks You Can Buy With $100 Now and Hold at Least a Decade was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
2 High-Yield Dividend Stocks You Can Buy With $100 Now and Hold at Least a Decade
Key Points Shares of Brookfield Infrastructure and Novo Nordisk offer an average yield that is more than triple the market average. Novo Nordisk lowered its forward outlook in response to a problem that has most likely been resolved already. Brookfield Infrastructure's pipelines and data centers aren't particularly thrilling, but they do generate predictable cash flows. 10 stocks we like better than Novo Nordisk › Despite a recent dip in response to unfavorable economic data, the stock market's bull run seems unstoppable. From April 4 through Aug. 8, the S&P 500 index shot up a whopping 25.9%. For dividend-seeking investors, a buoyant stock market can be a little annoying. Stock prices rising faster than profits means most dividend payers offer unattractive yields. The average yield from dividend payers in the benchmark S&P 500 index is an unattractive 1.2% at recent prices. Most dividend yields aren't particularly desirable right now, but there are still some underappreciated gems hiding in plain sight. Novo Nordisk (NYSE: NVO) and Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC) offer an average yield of 3.9% at recent prices. Plus, they could raise their payouts at a mid-single-digit percentage, or better, every year from now until you want to retire. You don't have to be wealthy to put your money to work with these stocks. At recent prices, $100 is enough to buy a share of both. Here's why that looks like a great idea for folks who would like to grow their passive income streams. Novo Nordisk From the end of 2023 through Aug. 7, shares of Novo Nordisk lost more than half their value. Earnings reported by the Denmark-headquartered company that markets Ozempic and Wegovy have performed much better than the stock. If we ignore currency exchange rates, U.S. investors who buy the stock at recent prices would receive a 3.44% yield if Novo Nordisk holds the payout flat. Holding dividend payments steady isn't in this company's nature. From 2020 through 2024, it raised annualized dividend payments by 120% in its native currency. Shares of this drugmaker have been under intense pressure since management lowered its sales outlook for 2025. On Aug. 6, the company told investors to expect revenue to rise between 8% and 14% this year. That's much slower than the 13% to 21% range management provided in May. On the bottom line, management lowered its operating earnings growth outlook to a range of between 10% and 16% this year. This is a slower rate of growth than we had been expecting, but it's still pretty good for an established pharmaceutical business. Shares of Novo Nordisk have been beaten down to just 14.1 times trailing earnings. This valuation implies growth at a low single-digit percentage over the long run. I'd argue that profit growth of around 10% annually seems far more likely. During its initial launch, Novo Nordisk failed to produce enough Wegovy to meet demand, which allowed independent compounding pharmacies to fill in the gap. The Food and Drug Administration declared an end to the Wegovy shortage in February. Compounding pharmacies that have been fighting the decision in U.S. courts without success are a headwind that seems likely to subside. Brookfield Infrastructure Even if you haven't heard of Brookfield Infrastructure, there's a good chance your employer relies on at least one of its assets. This subsidiary of Brookfield Asset Management owns and operates critical infrastructure networks that facilitate the flow of freight, passengers, data, water, and energy. Shares of Brookfield Infrastructure have fallen by about 15% over the past three years, but its dividend payout has risen by 18.5% over the same time frame. At recent prices, the stock offers an unusually large 4.3% dividend yield. Investing in pipelines, fiber optic cables, railways, data centers, toll roads, and telecom towers receives significantly less attention than big tech's investments in artificial intelligence (AI). I'd argue that this is one of the safest AI stocks you can buy now. Nobody knows which large language models will become the most popular over the long run, but we can be sure they will require heaps of energy and data transmission. Brookfield Infrastructure's portfolio includes assets that provide both. During the second quarter, Brookfield Infrastructure reported funds from operations (FFO), a proxy for earnings used to evaluate asset-heavy businesses, that rose 5% year over year to $0.81 per share. This is heaps more than it needs to meet a quarterly dividend payout currently set at $0.43 per share and raise it much further. Adding some shares to a diversified portfolio looks like a nearly surefire way to generate heaps of dividend income over the long run. Do the experts think Novo Nordisk is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Novo Nordisk make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.64%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Novo Nordisk. The Motley Fool has a disclosure policy. 2 High-Yield Dividend Stocks You Can Buy With $100 Now and Hold at Least a Decade was originally published by The Motley Fool
Yahoo
03-08-2025
- Business
- Yahoo
This More Than 4%-Yielding Stock's Smart Strategy Continues to Pay Big Dividends
Key Points Brookfield Infrastructure reported solid second-quarter results. The company made excellent progress on its capital recycling strategy. That smart strategy positions it to deliver strong growth in the coming years. 10 stocks we like better than Brookfield Infrastructure › Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) has a straightforward investment strategy. The global infrastructure operator acquires high-quality assets on a value basis, enhances their operations, and, eventually, sells the mature business. The company then recycles that capital into new investments with higher returns. This strategy has driven healthy growth in its funds from operations (FFO) and its high-yielding dividend. The payout, which yields over 4%, has grown at a 9% compound annual rate over the past 16 years. The company's wise strategy was on full display during the second quarter. It puts Brookfield in an excellent position to continue increasing its high-yielding dividend, making it an appealing option for those seeking passive dividend income. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Image source: Getty Images. Another solid showing Brookfield Infrastructure generated $638 million of FFO during the second quarter. This is a 5% increase from the prior year. The company benefited from strong organic growth and recently closed acquisitions. Organic growth drivers included inflation-linked rate increases in its utilities and transport sector. It also received contributions from over $1.5 billion in capital project completions, primarily new data centers. These growth catalysts helped mitigate the impact of foreign exchange rate fluctuations and asset sales associated with its capital recycling initiatives. The company's data segment provided the largest quarterly boost. FFO jumped 45% to $113 million. Brookfield benefited from its acquisition of a tower portfolio in India, which closed last year. It also commissioned several new data centers. Brookfield's midstream sector also delivered a strong quarter. FFO rose 10% to $157 million. The company's diversified midstream operations in Canada were standout performers thanks to high customer activity. This helped offset the sale of its U.S. gas pipeline in the second quarter. The robust growth from these two segments offset relatively flat results from the company's transportation and utilities businesses. Solid organic growth from rate increases and capital project completions muted the impact of asset sales and foreign exchange fluctuations in those businesses. Ready for the next wave Brookfield Infrastructure has been busy executing its capital recycling strategy this year. The company has already secured $2.4 billion in proceeds from nine asset sales. "This would be a good result in any given year, and we are only in July," the company noted in the second-quarter earnings press release. It secured four sales in the second quarter. Brookfield sold a 23% interest in its Australian export terminal, a 60% stake in a 244-megawatt portfolio of European data centers, a 33% interest in a portfolio of fully contracted shipping containers, and a partial interest in its U.K. ports operation. The company is selling these assets at very attractive values. The infrastructure operator will deploy this capital in new, higher-returning investment opportunities. Brookfield has secured three new investments to enhance its data, transport, and midstream sectors: Hotwire: Brookfield is investing $500 million into Hotwire, a leading bulk fiber-to-the-home service company. This business generates stable and steadily rising cash flow backed by long-term, take-or-pay, and inflation-linked contracts. Hotwire currently has over 300,000 billing customers and a significant contracted backlog. Railcar leasing platform: Brookfield is investing $300 million into a leading railcar leasing platform through a joint venture with GATX. The portfolio is the second-largest railcar leasing platform in North America, with over 125,000 railcars that generate very stable cash flow. Colonial Enterprises: The company is investing $500 million into the acquisition of Colonial, the largest refined products pipeline system in the country. It's paying an attractive value for an asset that generates very stable cash flows. Brookfield expects even more deals ahead. The company has several additional asset sales in advanced stages that could close in the coming months. These deals will provide more capital to recycle into new investment opportunities, which should be plentiful. In its earnings release, the company wrote, "We also continue to advance a large and diversified array of new investment opportunities that continues to grow and is driven by the digitalization, decarbonization, and deglobalization megatrends impacting our entire investable universe." The company believes that its organic growth and capital recycling strategy will drive annual FFO per share growth of over 10% in the long term. That supports its plan to increase its high-yielding dividend by 5% to 9% per year. Brookfield's brilliant growth strategy continues to pay big dividends Brookfield's approach of selling mature assets to reinvest in higher-return opportunities continues to drive growth. While the asset sales side of this strategy was a minor headwind in the second quarter, it should become a tailwind as the company closes its recently secured new investments. This strategy should also continue boosting its results in the future as Brookfield secures additional sales and new investments. Combined with healthy organic growth drivers, Brookfield should have plenty of power to continue increasing its high-yielding dividend going forward. Should you invest $1,000 in Brookfield Infrastructure right now? Before you buy stock in Brookfield Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Infrastructure wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Matt DiLallo has positions in Brookfield Infrastructure and Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
