Core Viewpoint - Brookfield Infrastructure is presented as an ideal investment for those seeking a combination of high dividend yield and rapid growth, currently offering a 4.3% yield while maintaining a strong growth trajectory in dividend payments [3]. Company Overview - Brookfield Infrastructure operates a diverse portfolio of utility, energy, transport, and data-related assets, which are essential for daily operations across various sectors [5]. - Approximately 85% of the company's funds from operations (FFO) are derived from regulated utility businesses and long-term contracts, making it a reliable income source for investors [6]. Dividend Growth - The company has consistently raised its dividend by 8% annually over the past 12 years, with the latest payout ratio at 68% of FFO, indicating a sustainable growth in dividend payments [7][8]. - Adjusted for foreign exchange, the second-quarter FFO increased by 9% year-over-year, aligning with the company's long-term growth expectations [8]. Growth Opportunities - Brookfield Infrastructure benefits from its parent company, Brookfield Asset Management, which has raised $97 billion in capital over the past year, providing ample opportunities for asset acquisition [10]. - The company recently acquired 5,500 miles of pipelines with a capacity of 2.5 million barrels per day, expecting to recoup its investment within seven years [11]. - Brookfield Infrastructure has a capital recycling program, successfully selling developed assets, such as a stake in its U.K. ports operation for $385 million, yielding a 19% internal rate of return [12]. Management and Strategy - With access to around 2,500 investment professionals from Brookfield Asset Management, the company is well-positioned to navigate the alternative-asset landscape and achieve growth within the expected range of 5% to 9% [13].

Core Viewpoint - Brookfield Infrastructure Partners reported strong operational performance in Q2 2025, with significant net income growth and successful capital recycling initiatives, positioning the company well for future investments and growth opportunities [2][3]. Financial Performance - Net income for Q2 2025 was $69 million, a substantial increase from $8 million in Q2 2024, driven by strong operational performance and realized gains from capital recycling activities [3][4]. - Funds from operations (FFO) for Q2 2025 reached $638 million, a 5% increase from $608 million in the same period last year, supported by organic growth and contributions from prior acquisitions [3][4]. - Revenue for Q2 2025 was $5.429 billion, compared to $5.138 billion in Q2 2024, reflecting a positive trend in operational performance [34]. Segment Performance - Utilities segment generated FFO of $187 million, slightly up from $180 million in the prior year, benefiting from inflation indexation and capital added to the rate base [4]. - Transport segment reported FFO of $304 million, down from $319 million year-over-year, but showed solid underlying performance with a 3% increase in traffic levels and a 4% rise in tolls [5]. - Midstream segment achieved FFO of $157 million, a 10% increase from the previous year, driven by strong organic growth and higher customer activity [6]. - Data segment saw a significant increase in FFO to $113 million, a 45% rise compared to the prior year, attributed to acquisitions and organic growth in data center operations [7]. Strategic Initiatives - The company secured three major investments in 2025, focusing on data, transport, and midstream segments, primarily in the U.S. market [8][9]. - The acquisition of Hotwire, a fiber-to-the-home services provider, is expected to close in late Q3 2025, with a purchase cost of up to $500 million [9]. - A partnership with GATX to acquire a leading railcar leasing platform is anticipated to close in Q1 2026, with a total purchase price of approximately $5.3 billion [10][11]. - The $9 billion acquisition of Colonial, the largest refined products pipeline system in the U.S., was completed, expected to yield a mid-teen cash yield [12]. Capital Recycling and Liquidity - The company has successfully raised approximately $2.4 billion from asset sales in 2025, indicating a robust capital recycling strategy [14][15]. - Notable asset sales include a 23% interest in an Australian export terminal for $280 million and a 60% stake in a European data center portfolio for $200 million [15][16]. - The company maintains a strong liquidity position with over $5.7 billion available at the end of Q2 2025, providing substantial capital for future investments [19]. Distribution and Dividend Declaration - The Board declared a quarterly distribution of $0.43 per unit, representing a 6% increase compared to the prior year, payable on September 29, 2025 [20].

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]

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].

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]

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]

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]

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]

[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)

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]