High yield investing can come with negative connotations, but it doesn't always have to imply elevated risk. That's when it's important to distinguish between whether a stock is an income play or an income trap. Hence, it's important to ask the following questions when evaluating a dividend stock. Is the dividend well-covered? Does the company employ a modest amount of leverage? What is the asset quality of the company, and what do its future prospects look like? Stocks fall in and out of favor all the time ...

The next very overrated big dividend stock we're going to discuss is a Dividend King: Altria. The reason we think Altria is very overrated is simply because, while its 8.4% dividend yield is quite attractive, its payout ratio is now at 80%, which means that it is not heavily covered, especially when you consider the fact that Altria is having to invest aggressively to try to diversify its business away from its core smokable products business that is rapidly declining to try to reignite the growth engine. T ...

Brookfield Infrastructure is an income-producing machine. I'm an avid income investor. I focus a lot of my attention on finding companies that can supply me with an above-average, steadily rising income stream. Investing in high-quality, high-yielding dividend stocks is the foundation of my strategy to grow my passive income streams to the point where they'll cover my recurring expenses. Brookfield Infrastructure (BIP 0.83%) (BIPC -0.76%) is one of my favorite income stocks. I'm routinely adding to my posit ...

All amounts in U.S. dollars BROOKFIELD, NEWS, May 31, 2024 (GLOBE NEWSWIRE) -- Brookfield Infrastructure Partners L.P. (NYSE:BIP, TSX:BIP) ("Brookfield Infrastructure") today announced the closing of a public offering of $150 million of fixed rate subordinated notes due May 31, 2084 (the "notes"). The issuer of the notes has granted the underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days from the date of the pricing of the offering, to purchase up to an additional ...

Core Viewpoint - Energy infrastructure companies are increasingly investing in natural gas storage assets, recognizing their critical role in balancing supply and demand, which is expected to enhance dividend growth for these companies [1][2][13]. Group 1: Investment Activity - Leading infrastructure operators have been actively acquiring gas storage assets, which are often overlooked by investors, indicating a growing recognition of their value [2][3]. - Brookfield Infrastructure has invested a total of $310 million in North American gas storage assets over the past decade, taking a contrarian approach during market lows [3][4]. - Enbridge acquired two gas storage assets for a total of $628 million, enhancing its cash flow and supporting LNG export facilities [7][9]. - Williams made a significant acquisition of a gas storage portfolio for nearly $2 billion, integrating it into its pipeline network to support power and LNG markets [11]. Group 2: Financial Performance - Brookfield's gas storage business has achieved over 20% compound annual growth in funds from operations (FFO) over the last five years, generating over $240 million in annual EBITDA [4][5]. - Enbridge's acquisitions are expected to provide stable, growing cash flow, supporting its high-yielding dividend, which has been increased for nearly 30 consecutive years [9]. - Williams anticipates significant earnings growth from its new gas storage assets, contributing to a dividend increase of over 6% earlier this year, with a forward yield above 4.5% [12]. Group 3: Future Growth Potential - Brookfield sees opportunities for its gas storage assets to support renewable natural gas and hydrogen, indicating a positive outlook for future growth [5][6]. - The ongoing demand for natural gas storage is expected to provide Brookfield, Enbridge, and Williams with growing cash flow, enhancing their ability to increase dividends [13].

These high-quality companies are often great buys during a sell-off.The stock market has been red-hot over the past year. The S&P 500 surged more than 25%, while the Nasdaq's value soared by about 33%. At some point, the market will take a breather. Market sell-offs are often ideal times to buy high-quality companies at great prices. NextEra Energy (NEE -1.06%) and Brookfield Infrastructure (BIP 0.23%) (BIPC -0.69%) will probably fall during the next market slump. That would be a great opportunity to scoop ...

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $615 million for Q1 2024, an 11% increase compared to the same period last year, reflecting organic growth of 7% and contributions from over $2 billion of capital deployed in the previous year [56][43] - The corporate liquidity at the end of Q1 remained strong with over $2 billion available to support growth initiatives [7] Business Line Data and Key Metrics Changes - The Transport segment generated FFO of $302 million, a 57% increase year-over-year, primarily due to the acquisition of Triton, which has exceeded performance expectations [3] - The Midstream segment produced FFO of $170 million, comparable to the prior year after excluding capital recycling impacts, with strong demand in North American Gas Storage operations [4] - Utilities generated FFO of $190 million, down from $208 million in the same period last year, mainly due to capital recycling initiatives, but organic growth was 8% driven by inflation indexation [43] - The Data segment's FFO was $68 million, consistent with the same period last year, supported by new data center acquisitions [45] Market Data and Key Metrics Changes - The company noted that geopolitical events in the Middle East have increased global demand for containers, leading to a fleet utilization rate of over 98% for Triton [3] - The company highlighted that approximately 90% of cash flows are regulated or contracted and inflation-protected, providing resilience in the current economic environment [6] Company Strategy and Development Direction - The company is focusing on high-risk-adjusted return opportunities in its investment pipeline, with a significant emphasis on organic and tuck-in opportunities [9] - The company is witnessing increased interest in infrastructure assets from institutional investors, which is expected to continue [10] - The company aims to achieve $2 billion in annual capital recycling, with $1.2 billion already secured [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite higher interest rates, citing a favorable revenue profile and sector tailwinds [6] - The outlook for the global economy remains positive, with expectations of continued interest in the data sector driven by digitalization trends [50][64] - Management acknowledged potential volatility in the near term due to geopolitical situations and interest rate fluctuations but emphasized the long-term stability of their diversified infrastructure business [89][90] Other Important Information - The company completed a $1.6 billion financing in its Brazilian regulated gas transmission business, generating approximately $500 million in proceeds [88] - The company signed a binding agreement to sell its fiber platform within the French telecom infrastructure business for over €1 billion, expected to yield an IRR of 17% [28] Q&A Session Summary Question: What is the current FFO related to decarbonization and digitalization trends? - Management indicated that approximately 30% of current FFO comes from residential decarbonization and data sectors, while 80% of the capital project backlog is in these areas, suggesting a growing proportion of cash flows from these segments [13] Question: Can you provide updates on the Inter Pipeline and its production ramp-up? - Management stated that the Heartland facility is expected to achieve full production by mid-2024, with current production levels in line with previous quarters [95] Question: How is the Triton business performing and what synergies are expected? - Triton is performing well above expectations, with excellent asset utilization and solid rates, contributing positively to the overall business [78][79] Question: What is the company's approach to M&A and capital allocation? - Management is being selective in M&A opportunities, focusing on high-return investments while preserving capital for potential future opportunities [18][99]

Financial Performance - Brookfield Infrastructure's Funds From Operations (FFO) reached $615 million, or $078 per unit, representing an 8% increase compared to the prior year[5, 183] - The distribution per unit was $0405, a 6% increase year-over-year[6, 174] - The payout ratio for the quarter was 67%, aligning with the company's long-term target range of 60-70%[168, 183] - Adjusted Funds From Operations (AFFO) amounted to $512 million[117] - Return on Invested Capital (ROIC) stood at 14%[102, 168] Segment Results - Utilities segment Adjusted EBITDA and FFO were $316 million and $190 million, respectively[18, 22, 42] - Transport segment Adjusted EBITDA and FFO were $401 million and $302 million, respectively[39, 40] - Midstream segment Adjusted EBITDA and FFO were $256 million and $170 million, respectively[28, 58] - Data segment Adjusted EBITDA and FFO were $130 million and $68 million, respectively[18, 67, 70] Strategic Initiatives and Liquidity - Brookfield Infrastructure secured approximately $12 billion in capital recycling proceeds, exceeding half of its $2 billion target[171] - Total liquidity was approximately $45 billion as of March 31, 2024[89, 162] - The company deployed approximately $450 million in growth capital expenditures across its utility, transport, midstream, and data businesses[185]

Transportation stocks may not be the flashiest investment, but in today’s economy, they tend to be stabler and more reliable than high-flying growth stocks. Still, pinning down top transportation stocks to buy is tricky. Err on the side of caution, and your investment may flatline indefinitely; swing the other direction, and your capital could crash faster than a car hitting a massive pothole.Generally, I’d recommend against highly regulated transportation stock sectors like airlines and rail companies. The ...

PM Images Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a promising passive income investment with an international profile, a diversified portfolio, resilient FFO and a low FFO payout ratio. The focus on owning and operating regulated infrastructure assets leads to long-term FFO visibility, and the company has delivered impressive distribution growth over the last decade. Brookfield Infrastructure Partners is selling for a low FFO multiple when taking into account the strength of its value proposit ...