Tuesday, January 8, 2019

Brookfield Infrastructure Has Some Contrarian Appeal

Canada’s Brookfield Infrastructure (BIP) had a rough 2018, with the shares underperforming the S&P 500 by around 14%. Rising interest rates aren’t particularly helpful for a business that uses a lot of debt financing, but I suspect other issues like weak currency in Brazil, rising global protectionism, and some sizable deals in nontraditional areas could have played a role. Whatever the case, Brookfield Infrastructure heads into 2019 with a higher-than-normal dividend yield, cash to deploy, and a refreshed portfolio of assets that should start contributing to distributable cash flow fairly soon.

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Brookfield Infrastructure Has Some Contrarian Appeal

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