While the wider markets are almost all time, Brookfield -Infrastructure (TSX: BIP.UN) is a TSX share that has fallen 27% compared to record levels. However, the current drawing has increased the forward dividend yield to 5.7%, making it attractive for income -seeking investors.
Let’s see why Canadian investors can currently receive exposure to this Blue-Chip Dividend shares.
The bull case for the TSX stock
Brookfield Infrastructure Partners offers a mandatory investment option, because it wants to take advantage of the tree from the artificial intelligence infrastructure.
Brookfield is A Global Infrastructure Company That Operates Across Four Key Segments: Utilities (Electricity Transmission, Gas Pipelines, and 8.4 Million Connections), Transport (21000+ km or Rail Track and 3,300 km or Gas transmisses), MidstRamelines and MidstRAMIs and MidstRAMIs) Cubic Feet of Storage), and Data (306,000 Telecom Towers, 28,000 km or fiber Cables, and 140 data centers with capacity of one gigawatt).
BIP possesses and operates essential infrastructure assets in the United States, Canada, Europe, Asia and Latin -America. In the second quarter (Q2) of 2025, Brookfield Infrastructure Funds of Operations (FFO) reported US $ 638 million or US $ 0.81 per unit, an increase of 5% year after year. This growth was driven by strong organic performance above target ranges and contributions of strategic acquisitions.
The data segment grew its FFO by 45% years after year to US $ 113 million, which reflects the massive demand for AI infrastructure options.
Brookfield, in particular, has used US $ 1.3 billion in three transformative acquisitions this year, with a BIP shares of BIP in the center of critical infrastructure trends.
The US $ 9 billion colonial pipeline acquisition provides exposure to the largest refined pipeline system in North America with attractive EBITDA nine times (profit for interest, tax, depreciation and amortization) multiples and mid-ten cash yields.
The Hotwire-glass fiber acquisition catches the growing demand for fast connectivity, while the RailCar leasing platform partnership with Gatx reinforces the presence of BIP’s transport infrastructure.
To date, BIP has obtained $ 2.4 billion in assets sales year, which is an annual record. These strategic dispositions, including partial interests in Australian export terminals and European data centers, present the ability of management to earn money with adult assets in attractive valuations, while keeping it upside down by persistent ownership institutions. This strategy for capital recycling makes it possible to make funded growth itself while retaining exposure to high -quality infrastructure assets.
The Canadian Midstream operations of BIP benefit from unprecedented demand drivers, including 12 gigawatts of requested data center power -question alone in Alberta. LNG Canada’s production slope and improved social license for energy development create substantial growth opportunities. BIP expects $ 650-750 million to EBITDA growth over the two largest middle current platforms until 2027.
BIP is “with the coherence” of AI infrastructure implementation, with almost all business segments that benefit from digitization trends. The diversified portfolio of electricity, data centers, transport and midstream assets perfectly positions it to catch the generation -investment chance of the generation -infrastructure that is powered worldwide by accepting artificial information.
Is the TSX dividend stock undervalued?
Brookfield -infrastructure is expected to expand its free cash flow from US $ 287 million in 2024 to US $ 5.2 billion in 2029. Compared to the adapted FFO per share of US $ 2.35 in 2024 in 2024 in 2027 in 2024 will increase.
If the TSX shares are priced at 12 times forward, the beginning of 2027 will trade around US $ 39, indicating an upward potential of 30% compared to current levels. For comparison: dividend per share is expected to increase from US $ 1.62 in 2024 to US $ 2.21 in 2029. If we record dividend payments, cumulative returns can be closer to 40% in the coming 18 months.
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