One of the companies that has quietly delivered one of the best performances in the market this year is Ferrovial SE (FER). The stock is up over 60% this year, which is a significantly better performance than most major indices. It will soon be added to the Nasdaq 100 Index ($NASX) when the index is rebalanced on Dec. 22. Such a moment is significant for a lesser-known stock. Being part of the Nasdaq 100 is important since it supports over $600 billion in assets worldwide. Being added to this index can t ...

We came across a bullish thesis on Brookfield Infrastructure Corporation on Beat the TSX (BTSX-20)’s Substack by Beat the TSX-27 Strategy. In this article, we will summarize the bulls’ thesis on BIPC. Brookfield Infrastructure Corporation's share was trading at $44.93 as of December 1st. BIPC’s trailing P/E was 4.25 according to Yahoo Finance. Photo by Mohamed Hadji on Unsplash Brookfield Infrastructure Corporation (BIPC, BIP.UN) offers investors a rare combination of income stability, structural growth ...

Core Viewpoint - Brookfield Infrastructure has underperformed compared to the S&P 500 over the past five years, despite strong financial results and a high-yielding dividend [1][2][5]. Performance Summary - Over the past five years, Brookfield Infrastructure's stock has returned -3.8%, while the S&P 500 has returned 88.9% [2]. - The one-year, three-year, and five-year performance of Brookfield Infrastructure compared to the S&P 500 shows significant underperformance in all periods [2][4]. Dividend Analysis - Brookfield Infrastructure offers a dividend yield of 3.8%, which is more than double that of the S&P 500 at 1.2% [3]. - The company has increased its dividend for 16 consecutive years, with a compound annual growth rate of 9% [3]. Financial Performance - In 2020, Brookfield generated $1.5 billion or $2.09 per share of funds from operations (FFO), and it expects to produce $2.6 billion or $3.32 per share of FFO this year, indicating compound annual growth rates of 13% and 10% respectively [5]. - The dividend payout ratio has decreased from 78% to 67% as earnings have grown faster than dividend payments [5]. Valuation Insights - Brookfield Infrastructure's valuation has become cheaper, currently trading at about 13.5 times its FFO, down from approximately 21.5 times five years ago [6]. - The company has faced headwinds such as a strong U.S. dollar and higher borrowing costs, which have impacted FFO growth [7]. Future Outlook - Positive trends are expected as the Federal Reserve cuts interest rates and the U.S. dollar may weaken, potentially leading to a reacceleration of FFO per share growth towards its long-term average of 14% annually [8]. - The organic project backlog has significantly increased from $2 billion in 2020 to $8 billion today, indicating growth potential [8]. Investment Considerations - Brookfield Infrastructure's stock has delivered underwhelming performance due to previous premium valuations and headwinds that slowed growth [9]. - With a much cheaper valuation and growth rate poised to reaccelerate, the company could deliver higher total returns for investors in the coming years [9].

Core Viewpoint - The article emphasizes the importance of generating passive income through dividend-paying stocks, highlighting three key investments: Brookfield Infrastructure, Energy Transfer, and Realty Income, which contribute significantly to financial independence. Brookfield Infrastructure - Brookfield Infrastructure has consistently increased its dividend for 16 consecutive years, with a compound annual growth rate of 9% during this period [3] - The current annualized income yield on the cost basis of Brookfield Infrastructure shares is 9.4%, which is more than double the company's current dividend yield of 3.9% [4] - The company anticipates a dividend growth of 5% to 9% per year, supported by a projected growth in funds from operations (FFO) per share exceeding 10% annually, driven by organic growth and acquisitions [6] Energy Transfer - Energy Transfer has rebounded from a previous distribution cut and now offers a higher distribution level than before the pandemic, making it a top income-generating investment [7][8] - The current annualized yield on the cost basis for Energy Transfer is 10.2%, significantly above its current yield of 8.2% [8] - The company plans to increase its payout by 3% to 5% per year, backed by a multi-billion-dollar backlog of secured expansion projects and a strong financial position [10] Realty Income - Realty Income has a strong track record of delivering dependable monthly dividends, having raised its payment 132 times since its public listing in 1994, including 112 consecutive quarters [13] - The REIT has grown its payout at a compound annual rate of 4.2% and currently offers a dividend yield of 5.62% [13][14] - Realty Income plans to invest approximately $5.5 billion this year, capitalizing on a $14 trillion total investable market opportunity across the U.S. and Europe [14]

Core Viewpoint - Ferrovial SE has declared an interim scrip dividend totaling EUR 342 million, which can be paid in cash or shares at the shareholders' discretion, with the dividend per share to be announced on October 23, 2025 [1]. Dividend Details - The dividend will be payable in cash or shares, with the ex-dividend date set for October 24, 2025, in Europe and October 27, 2025, in the US [2]. - The ratio for shares entitled to one Ferrovial share will be determined based on the volume-weighted average price of shares traded on specific dates in November 2025 [3]. - Shareholders can elect between cash and shares from October 28, 2025, to November 11, 2025, with default elections leading to shares if no choice is made [3][4]. Tax Implications - Cash dividends are subject to a 15% Dutch dividend withholding tax, while shares issued will incur withholding tax only on their nominal value of EUR 0.01 per share, which Ferrovial will cover [5]. - Local tax withholding may apply based on the shareholder's tax residency [6]. Timeline - Key dates include: - October 23, 2025: Announcement of the dividend per share - October 24, 2025: European Ex-Dividend Date - October 27, 2025: US Ex-Dividend Date and Dividend Record Date - October 28, 2025 - November 11, 2025: Election period for dividend choice - November 20, 2025: Announcement of the Ratio - From December 3, 2025: Payment of cash dividends and delivery of shares [7][8]. Additional Information - Election facilities will be available through banks or brokers starting October 28, 2025, and shareholders are encouraged to check their default options [8]. - Settlement of cash fractions will be based on the average price of shares traded on specified dates in November 2025 [9].

Core Viewpoint - Brookfield Infrastructure is highlighted as a prime choice for high-yield dividend investment due to its stable cash flows and strong growth potential [2][11]. Group 1: Financial Performance and Strategy - Brookfield Infrastructure operates a globally diversified portfolio of essential infrastructure assets, with 85% of its funds from operations (FFO) derived from long-term contracts or government-regulated structures, ensuring predictable cash flows [3]. - The company aims to distribute 60% to 70% of its stable cash flow as dividends, with an anticipated payout ratio of 67% in 2025, allowing for retained earnings to fund new investments [4]. - Brookfield maintains a strong investment-grade balance sheet (BBB+ rating) and employs a capital recycling strategy to finance growth by selling mature assets [5]. Group 2: Dividend Growth and History - Brookfield has a track record of increasing its dividend for 16 consecutive years, achieving a compound annual growth rate of 9% since its formation in 2008 [6]. - The company has grown its FFO at a 14% compound annual rate during the same period, supported by organic growth and accretive acquisitions [7]. Group 3: Future Growth Prospects - Brookfield has approximately $8 billion in organic expansion projects in its backlog, including significant investments in semiconductor fabrication and data centers [8]. - The company has raised $2.8 billion through asset sales this year, with a target of $3 billion in sales for the year and an additional $3 billion in the next 12 to 18 months, providing capital for new investments [9]. - Brookfield anticipates FFO per share growth exceeding 10% annually in the coming years, with potential growth rates trending closer to its historical average of 14% [10].

Core Insights - Income-seeking investors can find reliable dividend payers without sacrificing yield for quality, with some companies offering yields above 4% while the average in the S&P 500 is only 1.2% [1] Realty Income - Realty Income is a well-established REIT with 15,606 properties leased to 1,630 clients, known for its consistent dividend payouts [3] - The company has raised its monthly dividend for 111 consecutive quarters, totaling 131 increases since its IPO in 1994, currently offering a yield of 5.4% [4] - Despite challenges from rising interest rates, Realty Income has maintained a 3.54% annual dividend growth over the past five years [4] - The recent Federal Reserve interest rate cut of 0.25% is expected to enhance Realty Income's profits and dividend growth potential [5] - The company maintains a high occupancy rate of 98.6% by focusing on retail categories that drive foot traffic, such as convenience stores and grocery stores [5] - Realty Income's largest tenant, 7-Eleven, contributes only 3.4% to its annualized rental revenue, showcasing its diversification [6] - The REIT's strong credit rating (A3 from Moody's) allows it to borrow at favorable rates, such as $800 million at an average yield of 4.41% [7] Brookfield Infrastructure Corp - Brookfield Infrastructure has consistently increased its dividend payouts since its market debut 16 years ago, with an annual increase of 9% and a current yield of 4.2% [8] - The company's revenue is diversified, with 48% coming from transportation assets and the remainder from utilities, pipelines, and data centers, providing resilience against economic downturns [9] - As a subsidiary of Brookfield Corporation, Brookfield Infrastructure has access to significant resources, enabling it to acquire distressed assets [10] - In Q2, the company invested $1.3 billion in various infrastructure projects and raised $2.4 billion by trimming its asset portfolio [11] - Management anticipates a 5% to 9% annual increase in dividend payouts in the coming years, making it an attractive option for long-term investors [12]

Core Viewpoint - Brookfield Infrastructure is expected to outperform the market significantly in 2026, despite underperforming in the current year [1][14]. Financial Performance - The company is projected to generate $3.32 per share of funds from operations (FFO) this year, reflecting a more than 6% increase from last year, but below its target of over 10% annual growth [4]. - The anticipated acceleration in FFO growth is expected to move toward a historical track record of 14% annually, compared to the roughly 10% compound annual growth over the past five years [13]. Growth Catalysts - Strong organic growth drivers include inflation-linked rate increases in utility and transport segments, higher revenues in the midstream segment, and over $1.5 billion in new growth capital projects, including data centers [5]. - The company has a growing capital backlog, increasing from $2 billion in 2020 to $8 billion today, with significant projects including semiconductor fabrication plants and global data centers [9]. - Brookfield has secured $2.1 billion in new growth investments this year, with expectations for continued capital recycling, targeting at least $3 billion in sales this year and an additional $3 billion over the next 12 to 18 months [10][11]. Strategic Initiatives - The company is investing in AI infrastructure, identifying a $7 trillion investment opportunity, with plans to invest about $500 million annually in this area [12]. - Recent acquisitions include investments in Colonial Pipeline, Hotwire, and a partnership with GATX for railcar operating leases, totaling $1.3 billion [15].

Core Insights - Investing in dividend stocks is generally a wise decision, particularly in companies that consistently increase their dividends, as they have historically outperformed non-dividend stocks by more than two-to-one over the long term [1] Group 1: Brookfield Infrastructure - Brookfield Infrastructure has increased its dividend for 16 consecutive years, with a compound annual growth rate of 9%, currently yielding 4.2% [4][6] - Approximately 85% of Brookfield's funds from operations (FFO) are derived from long-term contracts or government-regulated rate structures, with 60% to 70% of stable cash flow paid out as dividends [5] - The company anticipates FFO per share growth of 6% to 9% annually, with acquisitions expected to drive growth exceeding 10% annually, supporting dividend increases of 5% to 9% per year [6] Group 2: PepsiCo - PepsiCo has increased its dividend for 53 consecutive years, qualifying as a Dividend King, with a compound annual growth rate of 7.5% over the past 15 years, currently yielding 4% [7] - The company aims for organic revenue growth of 4% to 6% per year and core earnings-per-share growth in the high single digits, supported by investments in product innovation and capacity expansions [8] - PepsiCo is transitioning its portfolio to healthier options through strategic acquisitions, which should facilitate continued dividend increases [9] Group 3: VICI Properties - VICI Properties has delivered eight consecutive annual dividend increases, with a compound annual growth rate of 6.6%, currently yielding 5.7% [10] - The REIT's long-term triple net leases provide stable rental income, with an increasing percentage of leases linked to inflation, expected to rise from 42% this year to 90% by 2035 [11] - By paying out about 75% of stable cash flow in dividends, VICI retains capital for further investments, including significant funding for new developments, which should support ongoing dividend growth [12] Group 4: Investment Recommendation - Brookfield Infrastructure, PepsiCo, and VICI Properties exhibit resilient cash flows and ongoing expansion initiatives, making them strong candidates for reliable and steadily growing dividends [13]

Core Viewpoint - Brookfield Infrastructure Partners L.P. has announced the issuance of $700 million in medium-term notes to support general corporate purposes, including debt repayment [1][2]. Group 1: Notes Issuance Details - The issuance consists of $375 million Series 15 Notes due January 6, 2031, with an interest rate of 3.700% per annum, and $325 million Series 16 Notes due September 24, 2035, with an interest rate of 4.526% per annum [1][2]. - The net proceeds from the sale of the notes will be managed by Brookfield Infrastructure Finance ULC, which is responsible for the payment of principal and interest [1][2]. Group 2: Offering Process - The notes will be issued under a base shelf prospectus dated January 23, 2025, with a related prospectus supplement and pricing supplements dated September 22, 2025 [2]. - The expected closing date for the issuance is around September 24, 2025, subject to customary closing conditions [2]. Group 3: Underwriting Syndicate - The offering is being facilitated by a syndicate of agents led by BMO Capital Markets, CIBC Capital Markets, Scotiabank, National Bank Financial Markets, RBC Capital Markets, and TD Securities [3]. Group 4: Company Overview - Brookfield Infrastructure is a global infrastructure company that operates high-quality, long-life assets in sectors such as utilities, transport, midstream, and data across the Americas, Asia Pacific, and Europe [5][6]. - The company focuses on assets with contracted and regulated revenues that generate predictable and stable cash flows [5].