We aren't even halfway through 2025, and already, it has been a roller-coaster year in the stock market. The major indexes incurred steep sell-offs, only to snap back like nothing happened.Some investors may be looking for ways to take their feet off the gas by investing in stocks that distribute a portion of their profits to shareholders through dividends. Dividends are a great way to generate passive income, no matter what the stock market is doing. This can be a good approach for risk-averse investors, f ...

Core Insights - Dividend-paying stocks are attractive investments for generating passive income and have historically provided strong total returns through earnings growth and shareholder payouts [1] Group 1: Brookfield Infrastructure - Brookfield Infrastructure's shares have declined nearly 10% from their 52-week high, resulting in a dividend yield of 4.2% [4] - The company has a strong dividend payment history, increasing its dividends for 16 consecutive years at a 9% compound annual rate [5] - Future dividend growth is targeted at 5% to 9% annually, supported by organic growth drivers and recent acquisitions, including a $500 million investment in Colonial Enterprises [6][7] Group 2: PepsiCo - PepsiCo's stock has dropped over 25% from its 52-week high, leading to a dividend yield of 4.4% [8] - The company recently raised its dividend by 5%, marking 53 consecutive years of dividend increases, qualifying it as a Dividend King [8] - Despite current headwinds affecting growth, PepsiCo is investing in healthier food options, which is expected to reignite earnings growth and support future dividend increases [10] Group 3: Prologis - Prologis shares have fallen more than 15% this year, resulting in a dividend yield of 3.7% [11] - The company reported an 11% increase in core FFO per share in the first quarter, driven by new leases at higher rates [12] - Long-term demand for warehouse space remains strong, with Prologis planning to build data centers to meet growing digitalization needs, supporting future dividend growth [13][14] Group 4: Investment Potential - Brookfield Infrastructure, PepsiCo, and Prologis offer dividend yields significantly higher than the S&P 500 average, along with strong earnings growth potential, making them attractive investment opportunities [15]

Core Viewpoint - Investing in dividend stocks, particularly Brookfield Infrastructure, is presented as a strong strategy for wealth growth, with the potential for significant returns over time due to its robust dividend growth and stable cash flow generation. Group 1: Dividend Growth and Returns - Brookfield Infrastructure offers an attractive dividend yield of over 4% and has a strong record of increasing its payouts, targeting a 5% to 9% annual increase in dividends [2][11] - The company has achieved a 14% compound annual growth rate in funds from operations (FFO) per share since its inception in 2009, contributing to a 9% compound annual dividend growth [6] - Investors in Brookfield have experienced a 13.5% annualized total return, highlighting the effectiveness of its dividend strategy [6] Group 2: Business Model and Cash Flow - Brookfield operates a diversified portfolio of high-quality infrastructure assets that generate stable cash flows, with 85% of its funds from operations backed by long-term contracts and government-regulated rate structures [4][5] - The company targets a payout ratio of 60% to 70% of its stable cash flow in dividends, allowing for reinvestment in growth while maintaining financial flexibility [5] - Inflation-linked contracts are expected to contribute an additional 3% to 4% to FFO per share annually, with economic growth adding another 1% to 2% [7] Group 3: Growth Strategy and Capital Projects - Brookfield has a record backlog of nearly $8 billion in capital projects, primarily in the data segment, which is expected to add 2% to 3% to FFO per share each year [8] - The company anticipates organic growth in FFO per share of 6% to 9% annually, supporting its dividend growth plan [9] - Recent strategic acquisitions, including a $500 million investment in a U.S. refined products pipeline and a joint venture to acquire a rail operating lease portfolio, are expected to enhance FFO per share growth [10]

Core Viewpoint - Brookfield Infrastructure Partners L.P. plans to redeem all outstanding Cumulative Class A Preferred Limited Partnership Units, Series 1, for cash on June 30, 2025, at a price of C$25.00 per unit, with a final quarterly distribution of C$0.248375 for holders of record as of May 30, 2025 [1]. Group 1: Company Overview - Brookfield Infrastructure is a leading global infrastructure company that operates high-quality, long-life assets in utilities, transport, midstream, and data sectors across the Americas, Asia Pacific, and Europe [2]. - The company focuses on assets with contracted and regulated revenues that generate predictable and stable cash flows [2]. - Investors can access Brookfield Infrastructure's portfolio through Brookfield Infrastructure Partners L.P. or Brookfield Infrastructure Corporation [2]. Group 2: Parent Company Information - Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, which manages over $1 trillion in assets [3].

Group 1 - The article discusses the feasibility and potential benefits of retiring with a highly concentrated investment portfolio consisting of only two picks [1] - Roberts Berzins has over a decade of experience in financial management, focusing on helping top-tier corporates with financial strategies and large-scale financings [1] - Berzins has contributed to the institutionalization of the REIT framework in Latvia, aiming to enhance the liquidity of pan-Baltic capital markets [1] Group 2 - Berzins has been involved in developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [1] - He holds a CFA Charter and an ESG investing certificate, and has experience from an internship at the Chicago Board of Trade [1] - Berzins is actively engaged in thought-leadership activities to support the development of pan-Baltic capital markets [1]

Core Points - Brookfield Infrastructure Partners L.P. announced the issuance of $250 million in Fixed-to-Fixed Reset Rate Subordinated Notes due September 1, 2055, with an initial interest rate of 5.598% until September 1, 2030, and subsequent resets every five years [1][2] - The net proceeds from the offering will be used for general corporate purposes, including repayment of outstanding debt [1] - The Notes will be issued by Brookfield Infrastructure Finance ULC, a wholly-owned subsidiary, and are guaranteed on a subordinated basis by Brookfield Infrastructure and certain subsidiaries [2][3] Company Overview - Brookfield Infrastructure is a leading global infrastructure company that operates high-quality, long-life assets in utilities, transport, midstream, and data sectors across the Americas, Asia Pacific, and Europe [7] - The company focuses on assets with contracted and regulated revenues that generate predictable and stable cash flows [7] - Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, which manages over $1 trillion in assets [8]

Group 1 - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Significant efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] - Development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock has been a focus [1] Group 2 - Roberts Berzins is a CFA Charterholder and holds an ESG investing certificate, indicating a strong background in investment analysis and sustainable finance [1] - Active involvement in "thought-leadership" activities supports the development of pan-Baltic capital markets, showcasing a commitment to industry advancement [1]

Financial Performance - Brookfield Infrastructure reported net income of $125 million for Q1 2025, down from $170 million in Q1 2024, with a per unit decrease from $0.10 to $0.04[2][3] - Net income for the three months ended March 31, 2025, was $526 million, a decrease of 35.4% compared to $814 million in the prior year[31] - BIPC reported net income of $762 million for the three-month period ended March 31, 2025, compared to $197 million in the prior year, indicating a significant increase of over 286%[46] - Net income for Q1 2025 was $762 million, significantly higher than $197 million in Q1 2024, marking an increase of 286%[53] Funds from Operations (FFO) - Funds from operations (FFO) increased by 5% year-over-year to $646 million, driven by inflation indexation and higher revenues, with a per unit increase from $0.78 to $0.82[3][4] - The utilities segment generated FFO of $192 million, slightly up from $190 million, with a normalized increase of 13% when excluding currency impacts[4][5] - The data segment saw a significant increase in FFO to $102 million, a 50% rise compared to the previous year, attributed to strong organic growth and acquisitions[7] - Funds from Operations (FFO) for the three months ended March 31, 2025, increased to $646 million, compared to $615 million in 2024, reflecting a growth of 5.0%[36] Revenue Growth - Total revenues for the three months ended March 31, 2025, increased to $5,392 million, up from $5,187 million in the same period of 2024, representing a growth of 4.0%[31] - Revenues for Q1 2025 increased to $929 million, up from $902 million in Q1 2024, representing a growth of 3%[53] Cash Flow and Operating Activities - Cash from operating activities for the three months ended March 31, 2025, was $868 million, slightly up from $841 million in the same period of 2024[33] - Cash from operating activities decreased to $243 million in Q1 2025 from $278 million in Q1 2024, a decline of 13%[55] Asset and Equity Changes - Total assets as of March 31, 2025, were $103,655 million, a slight decrease from $104,590 million as of December 31, 2024[26] - Total assets as of March 31, 2025, were $22.57 billion, down from $23.59 billion as of December 31, 2024, a decrease of 4%[50] - Total equity increased to $2.82 billion as of March 31, 2025, compared to $2.22 billion at the end of 2024, an increase of 27%[50] Corporate Borrowings and Expenses - Corporate borrowings increased to $4,727 million as of March 31, 2025, compared to $4,542 million at the end of 2024[26] - Direct operating costs rose to $355 million in Q1 2025 from $339 million in Q1 2024, an increase of 5%[53] - Interest expense increased to $273 million in Q1 2025, compared to $239 million in Q1 2024, reflecting a rise of 14%[53] Dividends and Distributions - The Board declared a quarterly distribution of $0.43 per unit, representing a 6% increase compared to the prior year, payable on June 30, 2025[16] - The company declared a quarterly dividend of $0.43 per class A exchangeable subordinate voting share, payable on June 30, 2025[43] Sales and Acquisitions - Brookfield Infrastructure secured $1.4 billion in sale proceeds from five advanced sale processes, including $1.2 billion net to BIP and $200 million from financial asset sales[8][9] - The company announced an agreement to exit its Australian container terminal operation for proceeds of $1.2 billion, with an expected closing in the second half of the year[9] - A minority stake sale in a portfolio of fully contracted containers generated $440 million, with over $120 million net to BIP, establishing a framework for future sales[10] - Brookfield Infrastructure is progressing with a $9 billion acquisition of Colonial, the largest refined products pipeline system in the U.S., with a competitive market position and high utilization[12][15] - The company expects to generate approximately $400 million in net proceeds from the sale of a non-core data center site, with closing anticipated in the second half of 2025[13] Shareholder Gains and Remeasurement - The company reported a basic and diluted gain per unit attributable to limited partners of $0.04 for the three months ended March 31, 2025, down from $0.10 in the prior year[38] - The company reported a significant remeasurement of shares classified as financial liability, resulting in a gain of $307 million in Q1 2025, compared to a gain of $37 million in Q1 2024[53]

Core Insights - Brookfield Infrastructure Partners reported solid financial results for Q1 2025, with a net income of $125 million, down from $170 million in Q1 2024, primarily due to higher borrowing costs and mark-to-market losses [2][3][4] - Funds from operations (FFO) increased by 5% year-over-year to $646 million, driven by inflation indexation and higher revenues across critical infrastructure networks [3][4][5] Financial Performance - Net income for Q1 2025 was $125 million, or $0.04 per unit, compared to $170 million, or $0.10 per unit, in Q1 2024 [2][3] - FFO for the quarter was $646 million, or $0.82 per unit, compared to $615 million, or $0.78 per unit, in the prior year [3][4] - Revenues for the quarter reached $5.392 billion, up from $5.187 billion in the previous year [33] Segment Performance - Utilities segment generated FFO of $192 million, slightly up from $190 million in the prior year [4] - Transport segment reported FFO of $288 million, down from $302 million, but normalized results were in line with the previous period [5][6] - Midstream segment's FFO increased to $169 million, an 8% rise on a comparable basis [7] - Data segment saw a significant increase in FFO to $102 million, a 50% rise compared to last year [8] Strategic Initiatives - The company secured $1.4 billion in sale proceeds from five advanced sale processes, including a $1.2 billion exit from an Australian container terminal operation [9][10] - A robust investment pipeline is expected to grow, particularly with the $9 billion acquisition of Colonial, a major refined products pipeline system in the U.S. [13][15] - The capital recycling program has generated approximately $1.6 billion in proceeds so far this year [12] Distribution and Dividend - The Board declared a quarterly distribution of $0.43 per unit, representing a 6% increase compared to the prior year [16][44] Financial Position - As of March 31, 2025, total assets were $103.655 billion, down from $104.590 billion at the end of 2024 [28][31] - Corporate borrowings increased to $4.727 billion from $4.542 billion [28][31]

Market Overview - The stock market has declined over 10% from recent peaks due to tariff concerns leading to recession fears [1] - While most indexes have rebounded, many stocks remain significantly down [1] Investment Opportunities - The market downturn has created buying opportunities for investors, particularly in high-quality dividend stocks that are down 20% or more [2] - Income-focused investors are encouraged to act quickly to capitalize on these opportunities [2] Brookfield Infrastructure - Brookfield Infrastructure Partners (BIP) and Brookfield Infrastructure Corporation (BIPC) have seen declines of over 20% and nearly 20% respectively, resulting in dividend yields of approximately 6% and 4.8% [3][4] - The company expects to grow funds from operations (FFO) at over 10% annually, driven by inflation-related rate increases, volume growth, and expansion projects [4] - Brookfield has a strong backlog of growth projects, particularly in semiconductor manufacturing and data centers, and anticipates a 5% to 9% annual dividend growth [5] Prologis - Prologis shares have dropped over 22%, increasing its dividend yield to 3.9% [6] - The company has achieved a 13% compound annual dividend growth over the past five years, outperforming the S&P 500 and REIT sector averages [6] - Prologis is well-positioned for continued dividend growth due to a gap between existing lease rates and market rents, along with a strong balance sheet to support development and acquisitions [7] PepsiCo - PepsiCo stock has fallen nearly 27%, raising its dividend yield above 4.1% [8] - The company plans to increase its dividend payment by 5%, extending its dividend growth streak to 53 years [8] - Despite facing near-term challenges from global trade shifts and slower consumer spending, PepsiCo expects long-term revenue growth of 4% to 6% annually, supported by investments in product innovation and a strong balance sheet [9][10] Conclusion - The current market conditions present significant opportunities for income investors to acquire high-quality dividend stocks at lower prices, with potential for future dividend growth [11]