Brookfield Infrastructure Partners (TSX: BIP.UN) currently yields 4.9%, but that’s not the only reason why Motley Fool Canada’s Iain Butler thinks it could be a smart stock to buy now. Watch the video for more information. Would you rather read? Below you will find a transcript.
Nick Sciple: I’m Motley Fool Canada Senior Analyst Nick Sciple, and this is ‘The Five-Minute Major’, here to make you a smarter investor in about five minutes. Interested in more stock ideas from us, or even formal recommendations? Click the icon in the top right corner for more.
Today on ‘The Five-Minute Major’ we discuss Brookfield Infrastructure and why it is one of the top stocks on our radar this month in October 2025. My guest today to help me with that is Iain Butler, Chief Investment Officer of Motley Fool Canada. Iain, thanks for joining me.
Iain Butler: Great to be here, as always, Nick.
Nick: For the uninitiated, Iain, what is Brookfield Infrastructure? What does the company do?
What does BIP do?
Iain: Brookfield Infrastructure is just one – I like to use the term – ‘tentacle’ in the Brookfield empire. At its core, Brookfield Infrastructure is one of the largest owners and operators of critical global infrastructure networks in existence. It owns essential assets for the global economy, and I’m talking high-quality, long-lived assets that provide essential services such as utilities, transportation, toll roads and data infrastructure. We are talking about pipelines, the transportation of natural gas and the data centers that are in the news every day these days. So Brookfield Infrastructure is a very crucial part of the global economy. It is a company diversified across four segments. It owns utilities. This segment includes regulated businesses, such as electricity transmission and natural gas distribution, all of which generate very stable and predictable cash flows.
There are also the components of transportation, midstream energy – which is pipelines – and again, data infrastructure. We’re talking about rail lines, ports, natural gas pipelines and again, the growing portfolio of data infrastructure, which includes cell towers, which is always an interesting asset.
All of this is bundled into one package, but overarching this package of assets – a very unique collection of assets, I might add – is the Brookfield strategy, and Brookfield’s strategy across the empire is to acquire assets on a value basis and actively manage them. Brookfield is actually the operator of these assets, which sets them apart in a world where there are financial owners of these things, but not necessarily operators. Brookfield combines them both, and they tend to buy these assets relatively cheaply. They do have some revenue in their portfolio, so they pick something up, fix it, run it for a while and then sell it for a higher price. So you get the stable income component that the assets provide, and later on you get kind of a more active management strategy on top of that.
That’s attractive.
Nick: Yeah, think about these infrastructure assets, which are very important at all times to form the backbone of our economy and what we need to sustain growth. Speaking of which now, as we sit in October 2025, why should people be excited about this company and the stock behind it?
Is Brookfield Infrastructure a good stock to buy?
Iain: One of the coolest things about Brookfield Infrastructure is that it’s publicly available to investors like you, me and anyone else who watches this video. Historically, these are the types of assets owned by governments, sovereign wealth funds and other institutional investors, such as pension funds or life insurance companies, companies with long-term liabilities. You and I have historically not had access to owning a turnpike, a port, or a private railroad, but Brookfield and others have really changed this game and opened up this niche for our portfolios, and our portfolios are better off for it. But looking specifically at Brookfield Infrastructure, the company is exceptionally well positioned to benefit from three of today’s biggest global trends. These are digitalization, decarbonization and deglobalization. Massive capital investments are required for data centers, renewable energy transmission and on-shoring of critical supply chains, and Brookfield benefits directly from these expenditures.
Another point here is that Brookfield Infrastructure offers inflation-protected cash flows in the current economic environment. It’s tied up in long-term contracts, and these contracts tend to move with inflation, so your value isn’t affected the longer you hold them.
Finally, it pays an attractive dividend, one that offers a 4.9% yield, and management has set a target of 5% to 9% annual growth, and this is something they have stuck to for as long as I have been following this company. This is therefore a reliable dividend grower that matches the current attractive yield. Again, we go back to the overarching value strategy that Brookfield offers, where you get portfolio turnover that’s going to add value along the way.
Nick: Yes, you have critical infrastructure, well managed by a great management team, in a market environment where demand for that sort of thing is increasing.
Also in a macroeconomic environment where an inflation-protected cash flow is probably more attractive today than at least five and ten years in the past. Iain, thank you so much for joining us for this edition of ‘The Five-Minute Major’. I hope to see everyone next time.
Iain Butler: Silly.
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