This Magnificent 4.9%-Yielding Dividend Stock Continues to Cash in on This Smart Strategy

Core Viewpoint - Brookfield Infrastructure has demonstrated consistent dividend growth, achieving a 9% compound annual growth rate over 16 years, with a current yield of 4.9% [1] Group 1: Dividend Growth and Strategy - The company has successfully increased its dividend for 16 consecutive years, supported by organic investments and strategic acquisitions [1][2] - A smart capital recycling strategy allows Brookfield to cash in on mature businesses, providing funds for new, higher-return investments [2][3] Group 2: Investment Strategy and Performance - Brookfield's strategy involves acquiring high-quality infrastructure assets, enhancing them, and recycling capital to fund new opportunities, targeting an internal rate of return (IRR) of 12% to 15% [3] - The successful exit from the Natural Gas Pipeline Company (NGPL) exemplifies this strategy, generating over $1.7 billion in total proceeds and an 18$90 million, with plans for further sales [8][9] - Brookfield has secured $700 million in proceeds from asset sales this year, aiming for$5 billion to $6 billion in total asset monetization over the next two years [9] - The company has a backlog of about$8 billion in organic capital projects and an additional $4 billion under development, positioning it for continued growth [10] Group 4: Growth Projections - Brookfield expects to achieve 6% to 9% annual growth in funds from operations (FFO) per share, with potential to exceed 10% by recycling capital into higher-return opportunities [11] - The company aims to maintain dividend growth within a target range of 5% to 9%, with total returns projected in the mid-teens [11]