Between a weak share price performance since the start
of the year, ample liquidity, and a rich set of investment options
around the world, I think this is an interesting time to look at Brookfield Infrastructure Partners L.P. (BIP).
Management is methodical about allocating capital; they know what they
want, and they know where their sweet spots are. With that, there aren't
too many transactions in the company's history that have gone seriously
sour and the company has a good track record when it comes to building
value and boosting its distributions.
Investors
should note that Brookfield Infrastructure is structured as a
partnership and investors will get a K-1. The company offers a fair bit
of easy-to-interpret information on its website, but I'd advise readers
to do a little extra research to make sure they understand the tax
ramifications. In any case, I think these units are worth the trouble -
in addition to a yield that's close to 5%, I believe a deep pipeline of
ongoing investment opportunities will support long-term distributable
cash flow growth in the high single-digits to low double-digits.
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Brookfield Infrastructure's Ample Liquidity Should Fuel Years Of Healthy Distribution Growth
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