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].