This 4.3%-Yielding Dividend Stock Could Double Its Payout In 8 Years

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].