Up over 20% since my last piece and with two double-digit dividend increases, I'm pleased with the performance at Macquarie Infrastructure (NYSE:MIC), but I still believe this infrastructure company has a lot left to offer investors. Management is planning to step up its growth capex investments and it appears that the company is somewhat spoiled for choice in the directions it can go with this capital.
Why are the shares still relatively cheap? Some of the issue could be that this is a "get rich slowly" type of story where dramatic changes in the business are not very common. It could also be that investors are nervous about management's commitment to deploying capital - it seems as though investors often get frustrated with companies like Macquarie, Brookfield Infrastructure Partners LP (NYSE:BIP), Fortress Transportation (NYSE:FTAI) and the like when they don't serially invest substantial sums of capital that will generate future free cash flow. In any case, I still believe the shares have enough upside left to be worth consideration here.
Macquarie Infrastructure Still Has A Lot To Offer