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Motley Fool CEO Recommends Dividend & Value Plays for a Defensive Stance Today
The Motley Fool· 2025-07-27 09:02
Market Overview - The S&P 500 index has experienced significant volatility in 2025, peaking in February and briefly entering correction territory in April, but has since achieved a record high [1][2] - Current trading levels for the S&P 500 are over 25 times earnings, with U.S. stocks representing 65% of global stocks, indicating historically high valuations [2] Investment Strategy - Tom Gardner, CEO of The Motley Fool, suggests that investors can still outperform the market by focusing on areas that are currently overlooked [3][5] - Emphasis is placed on seeking dividend-paying, defensive, and value stocks as a more cautious investment approach in the current high valuation environment [5][6] Stock Recommendations - **Enterprise Products Partners (EPD)**: A leading midstream energy company with over 50,000 miles of pipeline, offering a 6.9% dividend yield. The company has a strong track record of increasing dividends for 26 consecutive years and is expected to generate steady cash flows due to long-term contracts with inflation escalation clauses [9][11] - **Brookfield Infrastructure (BIPC/BIP)**: This company focuses on defensive assets such as utilities and railroads, with 85% of its funds from operations being contracted or regulated. It has achieved a 15% CAGR in funds from operations per unit over the past 15 years and targets over 10% FFO growth and 5% to 9% annual dividend growth [12][13] - **Nucor (NUE)**: The largest steel producer in North America, known for its cost-efficient electric arc furnaces and vertical integration. Nucor has increased its dividend for 52 consecutive years and is currently trading 30% below its all-time highs, presenting a potential value opportunity [14][17]
3 Top High-Yield Dividend Stocks I Plan to Buy in July to Boost My Passive Income
The Motley Fool· 2025-07-02 09:03
Core Insights - The article discusses the importance of generating passive income through investments in high-yielding dividend stocks, highlighting three specific companies: Brookfield Infrastructure, Chevron, and W.P. Carey as attractive options for income generation [2][13]. Brookfield Infrastructure - Brookfield Infrastructure is a leading global infrastructure investor with a diversified portfolio that includes utilities, energy midstream, transportation, and data assets, generating stable cash flow and supporting a dividend yield of over 4% [4]. - The company derives 85% of its funds from operations (FFO) from contracted or regulated assets, which are indexed to inflation, potentially adding 3% to 4% to its FFO per share annually, alongside an expected 1% to 2% growth from global economic expansion [5]. - Brookfield pays out 60% to 70% of its stable cash flow in dividends, allowing for reinvestment in growth projects, which are anticipated to boost FFO per share by 2% to 3% annually, with an overall expectation of more than 10% annual FFO per share growth [6]. Chevron - Chevron's dividend yield is nearing 5%, supported by a strong foundation with the lowest breakeven levels in the sector at approximately $30 per barrel, significantly below recent price points [7]. - The company has maintained a robust balance sheet with a leverage level of 14%, well below its target range of 20%-25%, enabling consistent dividend increases for 38 consecutive years [8]. - Chevron expects its growth projects to contribute an additional $9 billion to free cash flow next year at a $60 oil price and is pursuing an acquisition of Hess to enhance its production and cash flow growth outlook [9]. W.P. Carey - W.P. Carey is a diversified real estate investment trust (REIT) that owns critical operational real estate, including warehouse and retail properties, with leases that feature rental escalations tied to inflation, supporting a dividend yield of 5.5% [10]. - The REIT pays out about 70% to 75% of its stable cash flow in dividends, allowing for reinvestment in additional income-generating properties, supported by a strong balance sheet [11]. - W.P. Carey has consistently raised its dividend every quarter since late 2023, following a strategic exit from the office sector, and had previously increased its dividend annually for 25 years [12].
Brookfield Infrastructure Partners: Safe 5%-Plus Yield With Potential For Excellent Returns
Seeking Alpha· 2025-06-27 11:01
Group 1 - The article emphasizes the focus on businesses with strong cash generation, particularly those with a wide moat and significant durability, which can yield high rewards when bought at the right time [1] - Brookfield Infrastructure Partners (BIP) is highlighted as a high-yielding investment that is well-protected against various risks, including recession and geopolitical turmoil, with strong recent returns and significant potential [1] - The Cash Flow Club community offers features such as access to a leader's personal income portfolio targeting yields over 6%, community chat, a "Best Opportunities" List, and coverage of various sectors including energy midstream and commercial mREITs [1] Group 2 - Jonathan Weber, an analyst with an engineering background, has been active in the stock market and focuses primarily on value and income stocks, occasionally covering growth stocks [2]
When Market Pain Means Income Investor Gain
Seeking Alpha· 2025-06-15 13:15
Core Viewpoint - The current market and economic environment is described as highly uncertain, comparable only to the COVID-19 period and the Global Financial Crisis (GFC) [1] Group 1: Market Environment - The market is experiencing significant uncertainty, which is noted as the most challenging since the GFC, aside from the COVID-19 period [1] Group 2: Professional Background - Roberts Berzins has over a decade of experience in financial management, focusing on helping top-tier corporates with financial strategies and large-scale financings [2] - He has contributed to the institutionalization of the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [2] - Berzins holds a CFA Charter and an ESG investing certificate, and has experience with the Chicago Board of Trade [2]
Retire Rich, Stay Rich - 2 Yield Giants That Power Through Anything
Seeking Alpha· 2025-05-13 11:30
Group 1 - The article discusses the recent developments in trade talks with China, indicating that while there have been successes, the outcome has primarily led to a reduction in high earnings expectations for the S&P 500 [1] - The term 'Liberation Day' is used to describe the impact of these trade talks, suggesting a shift in market sentiment rather than tangible economic benefits [1] Group 2 - The article does not provide specific company or industry insights, focusing instead on broader market implications related to trade discussions [2][3] - There are no stock positions or recommendations made regarding specific companies, emphasizing an objective analysis of the market situation [2][3]
3 High-Yield Dividend Stocks to Buy Now and Hold for the Next 20 Years
The Motley Fool· 2025-05-05 12:03
Group 1: Brookfield Infrastructure - Brookfield Infrastructure is a leading infrastructure investor with a diverse portfolio including utilities, pipelines, data centers, and transportation assets globally [4] - The company has increased its dividend payout by 32.7% since 2020, currently offering a yield of 4.5% [5] - In the first quarter, funds from operations (FFO) rose 12% year over year, attributed to rate increases and acquisitions [6] - The company made growth capital expenditures of $730 million in the first quarter, maintaining $4.9 billion in liquidity for future investments [7] Group 2: Omega Healthcare Investors - Omega Healthcare Investors is a REIT focusing on skilled nursing and transitional healthcare facilities, with a portfolio of 978 operating facilities [9][10] - The company has maintained a steady dividend payout since 2019, despite challenges posed by the COVID-19 pandemic [11] - At recent prices, Omega offers a yield of 7.2%, with management expecting adjusted FFO to be between $2.95 and $3.01 per share in 2025 [12] Group 3: Realty Income - Realty Income is a net lease REIT known for its long track record of steady dividend increases, currently offering a yield of 5.7% [13] - The company has a diversified portfolio of 15,621 buildings, primarily in convenience stores and service-oriented retail [14] - Realty Income has leveraged its A3 credit rating to borrow $600 million at a low interest rate of 5.3% over the next 10 years, positioning itself well for future growth [16]
BIPC(BIPC) - 2025 Q1 - Quarterly Report
2025-04-30 11:20
[Q1 2025 Financial and Operational Highlights](index=1&type=section&id=Brookfield%20Infrastructure%20Reports%20Solid%20First%20Quarter%202025%20Results) Brookfield Infrastructure reported solid Q1 2025 results with a 5% FFO increase to $646 million, despite a net income decrease [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Brookfield Infrastructure reported solid Q1 results with FFO up 5% to $646 million, but net income decreased Q1 2025 Key Financial Metrics | US$ millions (except per unit) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $125 | $170 | -26.5% | | – per unit | $0.04 | $0.10 | -60.0% | | **FFO** | $646 | $615 | +5.0% | | – per unit | $0.82 | $0.78 | +5.1% | - FFO growth was driven by inflation indexation, higher revenues, commissioning of **$1.3 billion** in new capital, and contributions from recent acquisitions[3](index=3&type=chunk) - Net income was negatively impacted by higher borrowing costs and mark-to-market losses on corporate hedging, which contrasted with gains in the prior year[2](index=2&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Segment performance was led by a 50% FFO increase from Data, with Utilities and Midstream showing resilient growth FFO by Segment (US$ millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Utilities | $192 | $190 | | Transport | $288 | $302 | | Midstream | $169 | $170 | | Data | $102 | $68 | | Corporate | ($105) | ($115) | | **Total FFO** | **$646** | **$615** | [Utilities](index=1&type=section&id=Utilities) The Utilities segment generated FFO of $192 million, with a 13% normalized increase from inflationary benefits - The Utilities segment generated FFO of **$192 million**. When normalized for currency impacts and capital recycling, FFO would have increased **13%** year-over-year[4](index=4&type=chunk) - Growth was supported by inflationary benefits and the contribution from **$450 million** of capital commissioned into the rate base[4](index=4&type=chunk) [Transport](index=2&type=section&id=Transport) Transport FFO was $288 million, stable year-over-year, with volume contractions offset by strong intermodal and toll road results - The Transport segment's FFO was **$288 million**. After normalizing for foreign exchange, results were in line with the prior year[5](index=5&type=chunk) - Volume contraction in rail and ports was offset by record utilization in the global intermodal logistics operation and higher volumes (**+6%**) and rates (**+4%**) at toll roads[5](index=5&type=chunk) [Midstream](index=2&type=section&id=Midstream) Midstream FFO increased 8% to $169 million on a comparable basis, driven by strong volumes and higher pricing - The Midstream segment generated FFO of **$169 million**, representing an **8%** increase over the prior year on a comparable basis (adjusting for capital recycling and FX)[6](index=6&type=chunk) - Growth was driven by strong volumes and higher pricing, particularly for marketed products at the Canadian diversified midstream operation[6](index=6&type=chunk) [Data](index=2&type=section&id=Data) Data segment FFO increased 50% to $102 million, fueled by strong organic growth and a strategic acquisition - The Data segment's FFO increased by **50%** to **$102 million**, driven by strong organic growth and the acquisition of a tower portfolio in India[7](index=7&type=chunk) [Strategic Initiatives](index=2&type=section&id=Update%20on%20Strategic%20Initiatives) Strategic initiatives included $1.6 billion in capital recycling proceeds and the acquisition of Colonial pipeline for $9 billion [Capital Recycling Program](index=2&type=section&id=Capital%20Recycling%20Program) The company secured $1.6 billion in capital recycling proceeds year-to-date, realizing strong returns from asset sales - Secured **$1.4 billion** of sale proceeds in the quarter, with total proceeds reaching approximately **$1.6 billion** year-to-date following an additional data center stake sale[8](index=8&type=chunk)[11](index=11&type=chunk) - Agreed to sell the Australian container terminal for **$1.2 billion** (**$0.5 billion** net to BIP), achieving an **18x** EBITDA multiple, **17%** IRR, and nearly **4x** multiple of capital[9](index=9&type=chunk) - Completed the sale of a minority stake in a container portfolio for **$440 million** (over **$120 million** net to BIP)[10](index=10&type=chunk) - Progressing on three other asset sales expected to close later in the year, including interests in a U.S. gas pipeline and European and U.S. data center assets[13](index=13&type=chunk) [New Investments](index=2&type=section&id=New%20Investments) BIP secured the $9 billion acquisition of Colonial, the largest U.S. refined products pipeline system - Secured the **$9 billion** acquisition of Colonial, the largest refined products pipeline system in the U.S[12](index=12&type=chunk) - BIP's equity investment is expected to be **$500 million**, with the transaction expected to close in the second half of the year[15](index=15&type=chunk) - The acquisition was made at a multiple of approximately **9x** EBITDA and is expected to have a mid-teen going-in cash yield with a seven-year payback period[22](index=22&type=chunk) [Distributions](index=3&type=section&id=Distribution%20and%20Dividend%20Declaration) The Board of Directors declared a quarterly distribution of $0.43 per unit, marking a 6% increase from the prior year [Distribution and Dividend Declaration](index=3&type=section&id=Distribution%20and%20Dividend%20Declaration) The Board declared a quarterly distribution of $0.43 per unit, a 6% increase, with an equivalent BIPC dividend - Declared a quarterly distribution of **$0.43** per unit, payable on June 30, 2025[16](index=16&type=chunk) - This distribution represents a **6%** increase compared to the prior year[16](index=16&type=chunk) - BIPC declared an equivalent quarterly dividend of **$0.43** per share[16](index=16&type=chunk) [Brookfield Infrastructure Partners L.P. (BIP) Financial Statements](index=5&type=section&id=Brookfield%20Infrastructure%20Partners%20L.P.%20(BIP)%20Financial%20Statements) BIP's Q1 2025 financials show $103.7 billion in assets, $5.39 billion revenue, and $646 million FFO [Consolidated Statements of Financial Position](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2025, total assets were $103.7 billion, a slight decrease from year-end 2024 Consolidated Balance Sheet Highlights (US$ millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$103,655** | **$104,590** | | Cash and cash equivalents | $1,463 | $2,071 | | Property, plant and equipment | $56,550 | $55,910 | | **Total Liabilities** | **$73,880** | **$74,737** | | Corporate borrowings | $4,727 | $4,542 | | Non-recourse borrowings | $46,027 | $46,552 | | **Total Partnership Capital** | **$29,775** | **$29,853** | [Consolidated Statements of Operating Results](index=6&type=section&id=Consolidated%20Statements%20of%20Operating%20Results) Q1 2025 revenues increased to $5.39 billion, but net income attributable to the partnership decreased Consolidated Income Statement Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $5,392 | $5,187 | | Direct operating costs | ($3,964) | ($3,913) | | Interest expense | ($899) | ($794) | | **Net income** | **$526** | **$814** | | Net income attributable to partnership | $125 | $170 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operating activities was $868 million, with a net cash decrease from investing and financing activities Consolidated Cash Flow Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Cash from operating activities | $868 | $841 | | Cash used by investing activities | ($104) | ($2,159) | | Cash (used by) from financing activities | ($1,402) | $1,057 | | **Change in cash during the period** | **($638)** | **($261)** | [Reconciliation to Funds from Operations (FFO)](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Funds%20from%20Operations) Net income of $526 million was adjusted to arrive at $646 million FFO for Q1 2025 FFO Reconciliation (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $526 | $814 | | Depreciation and amortization | $960 | $936 | | FFO contribution from investments | $234 | $225 | | FFO attributable to non-controlling interests | ($907) | ($856) | | Other adjustments | ($167) | ($464) | | **FFO** | **$646** | **$615** | FFO per Unit Reconciliation | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Earnings per limited partnership unit | $0.04 | $0.10 | | Depreciation and amortization | $0.54 | $0.54 | | Deferred taxes and other items | $0.24 | $0.14 | | **FFO per unit** | **$0.82** | **$0.78** | [Brookfield Infrastructure Corporation (BIPC) Results](index=8&type=section&id=Brookfield%20Infrastructure%20Corporation%20(BIPC)%20Results) BIPC reported significantly increased net income of $762 million in Q1 2025, driven by a revaluation gain [BIPC Financial Highlights](index=9&type=section&id=BIPC%20Financial%20Highlights) BIPC reported net income of $762 million for Q1 2025, primarily due to a revaluation gain on its shares - BIPC reported net income of **$762 million** for Q1 2025, compared to **$197 million** in Q1 2024[46](index=46&type=chunk) - The large increase in net income was primarily due to the impact of revaluation on BIPC's own shares, which are classified as liabilities under IFRS[46](index=46&type=chunk) - Underlying earnings were over **150%** higher than the prior year, benefiting from inflation-indexation and capital commissioned at the U.K. regulated distribution business[46](index=46&type=chunk) [BIPC Consolidated Statements of Financial Position](index=10&type=section&id=BIPC%20Consolidated%20Statements%20of%20Financial%20Position) BIPC's total assets were $22.6 billion, with total equity increasing to $2.8 billion as of March 31, 2025 BIPC Consolidated Balance Sheet Highlights (US$ millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$22,570** | **$23,587** | | Shares classified as financial liability | $4,337 | $4,644 | | Non-recourse borrowings | $12,056 | $12,178 | | **Total Liabilities** | **$19,748** | **$21,365** | | **Total Equity** | **$2,822** | **$2,222** | [BIPC Consolidated Statements of Operating Results](index=10&type=section&id=BIPC%20Consolidated%20Statements%20of%20Operating%20Results) Q1 2025 revenues were $929 million, with net income of $762 million impacted by a revaluation gain BIPC Consolidated Income Statement Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $929 | $902 | | Remeasurement of shares classified as financial liability | $307 | $37 | | **Net income** | **$762** | **$197** | [BIPC Consolidated Statements of Cash Flows](index=11&type=section&id=BIPC%20Consolidated%20Statements%20of%20Cash%20Flows) BIPC generated $243 million in cash from operating activities, resulting in a net cash decrease BIPC Consolidated Cash Flow Highlights (US$ millions) | For the three months ended March 31 | 2025 | 2024 | | :--- | :--- | :--- | | Cash from operating activities | $243 | $278 | | Cash used by investing activities | ($32) | ($66) | | Cash used by financing activities | ($657) | ($388) | | **Change in cash during the period** | **($446)** | **($176)** | [Additional Information](index=3&type=section&id=Additional%20Information) This section provides conference call details, contact information, and cautionary forward-looking statements [Conference Call and Contact Information](index=3&type=section&id=Conference%20Call%20and%20Contact%20Information) The report provides Q1 2025 conference call and webcast details, along with contact information - A conference call was scheduled for 9:00am EST on the day of the release to discuss the results[18](index=18&type=chunk) - Contact information for media and investor relations is provided[23](index=23&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-looking%20Statements) This section contains a cautionary statement regarding forward-looking statements and associated risks - The news release contains forward-looking statements regarding business expansion, transaction completions, and future performance[23](index=23&type=chunk) - Actual results may differ materially due to risks such as general economic conditions, ability to complete transactions, market demand, and other factors detailed in SEC and Canadian securities filings[23](index=23&type=chunk)
BlackRock's Larry Fink Says "Buy Infrastructure:" Here's How to Do That and Collect a 6% Yield
The Motley Fool· 2025-04-26 18:51
Group 1: Portfolio Strategy - Larry Fink, CEO of BlackRock, suggests replacing the traditional 60/40 portfolio model with a 50/30/20 model, allocating 20% to infrastructure and real estate [1][5] - The 60/40 model has been a reliable choice for small investors, but Fink believes it is outdated due to the emergence of new asset classes [2][5] Group 2: Infrastructure Investment - Infrastructure includes large physical assets that provide reliable cash flows, such as utilities, toll roads, and energy pipelines [6] - Brookfield Infrastructure is highlighted as a leading company in the infrastructure sector, offering a 6% distribution yield for its partnership share class and a 4.8% yield for its corporate share class [7][9] Group 3: Brookfield Infrastructure Overview - Brookfield Infrastructure has a diversified portfolio with 26% of funds from operations (FFO) in utility assets, 41% in transportation, 21% in oil & gas pipelines, and 12% in data [9] - The company is managed by Brookfield Asset Management, operating similarly to a private equity firm by acquiring undervalued assets, upgrading them, and reinvesting proceeds [10] Group 4: Investment Appeal - Brookfield Infrastructure is positioned as an attractive investment option, providing high yield, regular distribution growth, and global diversification, making it suitable for income-focused portfolios [11]
5 Safe Dividend Stocks Yielding 5% or More to Buy Right Now for Durable Passive Income
The Motley Fool· 2025-04-16 01:02
Core Viewpoint - The stock market has experienced a significant decline this year due to tariff concerns, leading to increased dividend yields for high-quality companies, providing investors with opportunities for durable passive income streams even amid economic downturns [1]. Group 1: Dominion Energy - Dominion Energy currently offers a dividend yield of 5.1%, supported by stable cash flow from electricity and natural gas supply in Virginia and the Carolinas [2]. - The company is investing $50 billion through 2029 to expand power generation, anticipating increased electricity demand from AI data centers and onshoring manufacturing, which is expected to grow earnings per share by 5% to 7% annually [3]. Group 2: NNN REIT - NNN REIT has a dividend yield of 5.8%, generating steady rental income from a portfolio of single-tenant net lease retail properties where tenants cover all operating costs [4]. - The REIT pays out less than 70% of its cash flow in dividends, projecting $200 million in post-dividend free cash flow for reinvestment in additional income-generating properties, and has increased its dividend for 35 consecutive years [5]. Group 3: Brookfield Infrastructure - Brookfield Infrastructure offers a dividend yield of around 5%, with 85% of its funds from operations supported by government-regulated rate structures or long-term contracts [6]. - The company retains 60% to 70% of its stable cash flow for reinvestment, focusing on growing its business and upgrading infrastructure, with expected FFO per share growth of over 10% annually, supporting 5% to 9% dividend growth [7]. Group 4: Verizon - Verizon's dividend yield is 6.2%, with recurring cash flow from wireless and broadband services, generating $36.9 billion last year [8]. - The company is investing $17.1 billion in capital expenditures and has $8.6 billion in excess free cash, which is used to strengthen its balance sheet and support its dividend payments [9]. - Verizon is acquiring Frontier Communications for $20 billion to enhance its fiber network, with investments in fiber and 5G expected to grow cash flow and continue its 18-year dividend growth streak [10]. Group 5: Oneok - Oneok has a dividend yield of 5%, supported by stable cash flow from government-regulated rate structures and long-term contracts [11]. - The company is diversifying and expanding its midstream platform through major acquisitions and organic capital projects, positioning itself for 3% to 4% annual dividend growth while maintaining a trend of dividend stability for over 25 years [12]. Group 6: High-Yielding Dividend Stocks - The recent stock market sell-off has led to increased dividend yields, with many high-quality companies offering payouts of 5% and above, providing attractive income streams for investors [13].
Brookfield Infrastructure Partners: Sell-Off Makes It Even Better
Seeking Alpha· 2025-03-30 02:02
Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan's primary focus is on value and income stocks but he covers growth occasionally. Analyst's Disclosure: I/we have a beneficial long position in the shares of BIPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensa ...