Latest news with #BrookfieldInfrastructure
Yahoo
2 days ago
- Business
- Yahoo
Got $100 to Invest? 1 Top Dividend Stock Yielding Over 4% You Can Buy Without Hesitation in June.
Brookfield Infrastructure offers a more than 4% dividend yield. The company backs that payout with stable cash flow and a rock-solid financial profile. The company expects to grow its dividend by 5% to 9% per year. 10 stocks we like better than Brookfield Infrastructure › Buying dividend stocks can be a great way to grow your wealth. They can be powerful wealth creators over the long term. For example, data from Ned Davis Research and Hartford Funds shows that a hypothetical investor who put $100 into companies that pay a growing dividend would have seen that investment grow to over $15,000 in 50 years. That's a 10.2% annualized return. That compares with only about $900 by investing the same amount in non-dividend-payers, for a 4.3% annualized return. If you've got $100 to invest this June, Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) is one top dividend stock you shouldn't hesitate to buy. The global infrastructure operator offers an attractive dividend, with more than a 4% yield, and has a terrific record of growing its payout. Brookfield Infrastructure has a business built to pay a growing dividend. The global infrastructure company operates a diversified portfolio of high-quality utilities, transport, midstream, and data assets that generate stable cash flows backed mainly by long-term contracts and government-regulated rate structures -- and by "mainly," I mean 85% of its funds from operations (FFO). Those frameworks also either index its rates to inflation, totaling 70%, or protect it from the impact of inflation, totaling 15%. That means its business generates steadily rising cash flow. Brookfield targets to pay out 60% to 70% of its stable cash flow in dividends. That gives it a nice cushion while allowing the company to retain meaningful excess free cash flow to reinvest in growing its business. Brookfield also has a strong investment-grade balance sheet with lots of liquidity. The company maintains its financial flexibility by recycling capital to fund additional growth -- that is, selling mature assets to fund higher-returning new investments. The company's strategy of acquiring high-quality infrastructure assets on a value basis, enhancing them through operations-oriented management, and then recycling mature assets into new investments has paid big dividends for investors over the years. Brookfield has grown its FFO per share at a 14% compound annual rate since its inception in 2009. That has helped fuel 9% compound annual dividend growth. Brookfield has increased its payout every year over that 16-year period. That has helped drive a 13.5% annualized total return for Brookfield investors. Brookfield's inflation-linked contracts provide it with a solid growth baseline. The company estimates these agreements will add 3% to 4% to its FFO per share annually. On top of that, it expects economic growth to add another 1% to 2% to its FFO per share each year by driving volume growth across its infrastructure assets. The company also invests its retained cash flows into expansion projects across its existing infrastructure platforms and new ones. It currently has a record backlog of nearly $8 billion in capital projects under construction that it expects to complete over the next two years. Most of these projects, totaling almost $5.9 billion, are in its data segment, which includes data center developments and two U.S. semiconductor fabrication facilities. Brookfield estimates these projects will add another 2% to 3% to its FFO per share each year. Add up those three drivers, and Brookfield expects to organically grow its FFO per share by 6% to 9% per year. That supports its plan to increase its dividend by 5% to 9% annually. On top of that, the company sees additional growth potential by continuing to execute its capital recycling strategy to make accretive acquisitions. Brookfield believes this plan can boost its FFO per share growth rate above 10% annually over the long term. The company has been actively executing its strategy this year. It closed the sale of five assets, generating $1.4 billion in proceeds, and has more under way. Meanwhile, the company is already starting to put that capital to work. It agreed to invest $500 million in equity in the acquisition of a leading U.S. refined products pipeline system. Brookfield also formed a 70-30 joint venture with GATX to acquire Wells Fargo's rail operating lease portfolio, totaling 105,000 railcars, for $4.4 billion. As part of the deal, GATX has options to acquire Brookfield's interest over the next 10 years. The company will also directly acquire Wells Fargo's rail finance lease portfolio, totaling 23,000 railcars and 440 locomotives, which GATX will manage on its behalf. These deals will help enhance its FFO per share growth rate, giving Brookfield more fuel to grow its high-yielding dividend. Brookfield Infrastructure built its business to pay an attractive and growing dividend. The company expects to increase its over 4%-yielding payout by 5% to 9% annually, supported by its plan to grow its FFO per share by more than 10% per year. That puts Brookfield in a strong position to produce total returns in the low to mid-teens. That's excellent return potential from a high-yielding dividend stock with a lower risk profile. You can buy shares without hesitating this June. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Wells Fargo is an advertising partner of Motley Fool Money. 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. Got $100 to Invest? 1 Top Dividend Stock Yielding Over 4% You Can Buy Without Hesitation in June. was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio
The $4.4 billion rail equipment leasing division of Wells Fargo & Company (NYSE:WFC) will be sold to a joint venture between Brookfield Infrastructure and GATX Corporation. A team of bankers in suits, discussing the success of the company's banking products. The agreement covers the whole rail operating lease portfolio, which consists of about 105,000 railcars, as well as the rail finance leasing portfolio, which consists of 440 locomotives and 23,000 railcars. According to Wells Fargo & Company (NYSE:WFC), the deal fits with its plan to streamline operations and will not have a significant effect on its financials. Brookfield Infrastructure will own 70% of the business, with the possibility that GATX Corporation may eventually acquire the entire company. GATX Corporation will oversee operations and initially hold a 30% stake in the business. It's anticipated that the deal will close by Q1 2026. David Marks, executive vice president, Wells Fargo & Company (NYSE:WFC) Commercial Banking, commented: "This transaction is consistent with Wells Fargo's ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients," GATX Corporation acquires operational control, strengthening Brookfield Infrastructure's capital depth and its freight transport infrastructure network. While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None. 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
Bloomberg
6 days ago
- Business
- Bloomberg
Wells Fargo Agrees to Sell Railcar Assets to Brookfield, GATX
Wells Fargo & Co. agreed to sell the assets of its rail equipment leasing business to a venture between Brookfield Infrastructure Partners and GATX Corp. as the bank continues to refocus on its core lending and advisory businesses. The sale includes Wells Fargo's portfolio of rail operating lease assets, which have a book value of about $4.4 billion, as well as its rail finance lease portfolio, the bank said Thursday in a statement. The deal, which isn't expected to materially impact earnings, should close by early next year, it said.
Reuters
6 days ago
- Business
- Reuters
Wells Fargo signs deal to sell $4.4 billion rail assets portfolio
May 29 (Reuters) - Wells Fargo (WFC.N), opens new tab said on Thursday it has signed a deal to sell its rail equipment leasing business to a newly formed joint venture between railcar lessor GATX Corporation (GATX.N), opens new tab and Brookfield Infrastructure (BIP.N), opens new tab. The deal, which the U.S. banking giant said will not have a material impact on its financial position or earnings, includes the entire rail operating lease assets valued at around $4.4 billion, as well as the rail finance lease portfolio. "This transaction is consistent with Wells Fargo's ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients," said David Marks, executive vice president, Wells Fargo Commercial Banking. In a separate statement, GATX and Brookfield Infrastructure said the rail operating lease portfolio includes roughly 105,000 railcars. Additionally, Brookfield Infrastructure has also agreed to acquire Wells Fargo's rail finance lease portfolio, composed of roughly 23,000 railcars and around 440 locomotives. GATX will initially own 30% and Brookfield Infrastructure 70% of the joint venture, with the former having the option to acquire full ownership over time. GATX will have commercial and operational control, and manage all joint venture assets. The companies said they expect the deal to close in the first quarter of 2026 or sooner.
Yahoo
6 days ago
- Business
- Yahoo
GATX Corporation and Brookfield Infrastructure to Acquire Wells Fargo's Rail Assets
GATX and Brookfield Infrastructure form a joint venture and enter into an agreement to acquire Wells Fargo's rail operating lease portfolio, composed of approximately 105,000 railcars Additionally, Brookfield Infrastructure enters into an agreement to directly acquire Wells Fargo's rail finance lease portfolio, composed of approximately 23,000 railcars and approximately 440 locomotives GATX to serve as manager of the railcars in the joint venture and the finance lease railcars and locomotives directly owned by Brookfield Infrastructure CHICAGO, May 29, 2025--(BUSINESS WIRE)--GATX Corporation (NYSE: GATX) announced today a definitive agreement to acquire approximately 105,000 railcars from Wells Fargo for $4.4 billion through a newly formed joint venture with Brookfield Infrastructure Partners L.P. ("BIP") (NYSE: BIP; TSX: and its institutional partners (collectively, "Brookfield Infrastructure"). Initial joint venture equity ownership will be GATX (30%) and Brookfield Infrastructure (70%), with GATX having the option to acquire 100% of the joint venture equity over time. GATX's global portfolio of assets includes tank and freight railcars, commercial aircraft spare engines, and tank containers. BIP is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager, with over $1 trillion of assets under management. "This is an outstanding opportunity to build on GATX's leading North American platform," said Robert C. Lyons, president and chief executive officer of GATX. "Throughout our 125-plus-year history, we have developed unique asset, commercial and operational expertise that positions us to acquire and integrate this fleet. Importantly, by acquiring the assets in this manner, we will maintain the financial flexibility and capacity to continue growing all of our businesses while capitalizing on the value creation opportunities inherent in the assets acquired." Mr. Lyons added, "We will work closely with customers to ensure an efficient transition to GATX's commercial and operational platform. The acquisition will enhance GATX's fleet diversification, providing additional opportunities to serve our customers. In the first full year after closing, we expect the impact of the transaction to be modestly accretive to earnings per share, with more material contributions thereafter." The transaction is subject to customary closing conditions, including required regulatory approvals and clearances, and it is expected to close in the first quarter of 2026 or sooner. Advisors BofA Securities acted as the sole financial advisor to GATX and Brookfield Infrastructure. Mayer Brown is serving as legal counsel to GATX. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Brookfield Infrastructure. Transaction Details The following information relates to the newly formed joint venture between GATX and Brookfield Infrastructure and the agreement to acquire the rail operating lease portfolio, composed of approximately 105,000 railcars: Joint Venture Structure Initial equity ownership in the joint venture will be shared between GATX (30%) and Brookfield Infrastructure (70%). GATX will have commercial and operational control of the joint venture assets and will manage all assets on behalf of the partners. GATX will hold a series of annual call options that, if exercised, will enable GATX to acquire up to 100% of Brookfield Infrastructure's equity interest over time. If each annual call option is exercised, GATX would acquire Brookfield Infrastructure's equity interest in 10 years or less. GATX's initial equity contribution will be approximately $400 million and will be funded through general operating cash flow and financing activity. Future call options, if exercised, also will be funded through general operating cash flow and financing activity and will fit manageably within GATX's ordinary capital investment plan. It is expected that the joint venture will be a static pool of assets. GATX's current and future investment and growth initiatives across its businesses are expected to be unaffected by this acquisition. Joint Venture Financing In addition to the partner equity contributions, Wells Fargo Securities, LLC, BofA Securities, MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation (SMBC) are providing the joint venture with a fully underwritten $3.2 billion 5-year unsecured term loan and a $250 million unsecured revolving credit facility. Financial Statement Impact Given GATX's commercial and operational control of the joint venture assets, it is expected that the joint venture will be consolidated on GATX's financial statements. It is expected that Brookfield Infrastructure's initial joint venture equity contribution, a Non-Controlling Interest ("NCI"), will be presented on GATX's balance sheet as common equity. GATX's post-acquisition credit and return metrics are expected to be generally in line with current metrics. The Wells Fargo Rail Assets Acquired The 105,000 railcar operating lease portfolio consists primarily of freight cars (95%), spread across a diverse mix of specific car types. Current fleet utilization is approximately 97%. TELECONFERENCE INFORMATION GATX Corporation will hold an investor call on the morning of May 30, 2025 to discuss the transaction. Call details are as follows: Date: May 30, 2025 Time: 9:00 a.m. (Eastern Time) Domestic Dial-In: 1 (800) 715-9871 International Dial-In: 1 (646) 307-1963 Live Webcast: Replay: 1-800-770-2030 (or 1-609-800-9909 International) / Access Code: 8822283 Call-in details, a copy of this press release, related presentation materials and real-time audio access are available at Please access the call 15 minutes prior to the start time. A replay will be available on the same site starting at 2 p.m. (Eastern Time), May 30, 2025. FORWARD-LOOKING STATEMENTS Statements contained in this press release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that are difficult to predict and could cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. Forward-looking statements include, but are not limited to, statements regarding our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "outlook," "continue," "likely," "will," "would," and similar expressions. Forward-looking statements are based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Actual results may differ materially from those anticipated in these statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. A variety of factors could cause actual results to differ materially from current expectations expressed in forward-looking statements, including, but not limited to, those discussed under "Risk Factors" and elsewhere in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. These factors include, among others: a significant decline in customer demand for our transportation assets or services (including as a result of prolonged inflation or deflation, high interest rates, weak macroeconomic conditions and the impact of global trade disruptions, weak market conditions in our customers' businesses, adverse changes in the price of or demand for commodities, changes in railroad operations, efficiency, pricing and service offerings, labor strikes or shortages, changes in or disruptions to supply chains, availability of alternative modes of transportation, changes affecting the aviation industry, customers' decisions to purchase rather than lease transportation assets, or other operational or commercial decisions by our customers); inability to maintain our transportation assets on lease at satisfactory rates and terms due to reduced demand, oversupply, or other market changes; competitive factors in our primary markets, including competitors with greater financial resources, higher credit ratings, or lower costs of capital; higher costs associated with increased assignments of transportation assets following non-renewal of leases, customer defaults, or maintenance programs; events adversely impacting assets, customers, or regions where we have concentrated investment exposure; financial and operational risks associated with long-term purchase commitments for transportation assets; reduced opportunities to generate asset remarketing income; inability to successfully complete and manage ongoing acquisition and divestiture activities; reliance on key suppliers or partners, such as Rolls-Royce in our aircraft spare engine leasing business, and risks associated with their performance; potential obsolescence of our assets; risks related to international operations and expansion, including changes in laws, regulations, tariffs, taxes, treaties, or trade barriers; failure to successfully negotiate collective bargaining agreements with unions representing our employees; inability to attract, retain, and motivate qualified personnel, including key management; inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruptions; exposure to damages, fines, penalties, and reputational harm from litigation, including claims arising from accidents involving transportation assets; changes in, or failure to comply with, laws, rules, and regulations; environmental liabilities and remediation costs; operational, functional, and regulatory risks associated with climate matters, severe weather events, and natural disasters; U.S. and global political conditions, including increased geopolitical tensions and wars, and their impact on economic conditions and supply chains; fluctuations in foreign exchange rates; deterioration of capital market conditions, reductions in our credit ratings, or increases in financing costs; inability to obtain cost-effective insurance; changes in assumptions, increased funding requirements, or investment losses in our pension and post-retirement plans; inadequate allowances for credit losses in our portfolio; asset impairment charges; inability to maintain effective internal control over financial reporting and disclosure controls and procedures; and the occurrence of a widespread health crisis and the impact of related measures. These and other risks and uncertainties could cause actual results to differ materially from those projected or implied in forward-looking statements. For a more complete discussion of these and other risks, please refer to our filings with the U.S. Securities and Exchange Commission. COMPANY DESCRIPTION At GATX Corporation (NYSE: GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919. AVAILABILITY OF INFORMATION ON GATX'S WEBSITE Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on under the "Investors" tab. View source version on Contacts FOR FURTHER INFORMATION CONTACT:GATX CorporationShari HellermanSenior DirectorInvestor Relations and Corporate 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
