Every time the Federal Reserve (the Fed) cuts interest rates, investors tend to flock to the sectors they believe will outperform the most due to historical reactions and fundamental reasoning. However, this rate cut is a bit different than the ones experienced in the recent past, as the United States economy is more globalized and a bit slower than before. This will be a different case study, one in which rising credit card delinquency rates and spiking car repossessions will place a headwind in the consum ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial . At least, it seems to be that way, as U.S. stocks have hit news records, commodities are surging again, and bond market volatility is easing. Analyst's Disclosure: I/we have a beneficial long position in the shares of NOC either through stock ownership, options, or other deriva ...

Klaus Vedfelt Many investors, who have not reached their retirement age or are in early retirement years tend to focus not only on extracting attractive yield, but also capturing some element of growth both on the current income and portfolio appreciation front. In theory this makes sense as the longer the time horizon is, the higher the potential to benefit from the compounding magic that would come from consistently growing dividends at, say, ~ 10% each year. In such situation sacrificing initial dividend ...

Brookfield Infrastructure is a wealth-creating and income-producing machine. I buy a lot of dividend stocks. I focus on dividends because they have proven to be powerful wealth creators. Over the past 50 years, dividend payers have outperformed the average stock in the S&P 500 -- their 9.2% average annual total return beats the 7.7% produced by an equal-weighted S&P 500 index. Dividend growers and initiators have done most of the heavy lifting, posting a 10.2% annual return compared to 6.7% for companies wi ...

The stock market is around an all-time high, but that doesn't mean you have to pay up for quality companies. Bargains can be harder to come by when the stock market is up big on the year. But there are plenty of opportunities if you know where to look. Toyota Motor (TM 1.08%), Delta Air Lines (DAL 2.24%), and Brookfield Infrastructure (BIP 0.17%) (BIPC 1.05%) may not be the fastest-growing, flashiest names. But all three companies reward investors with growing payouts and have inexpensive valuations. Here's ...

These companies pay very durable dividends that should keep growing. Generating passive income is a key aspect of my early retirement strategy. I'm working to build up my sources of passive income so that I no longer have the stress of needing to work for money. The primary aspect of my plan is investing in companies that pay above-average dividends that should steadily rise in the decades ahead. Realty Income (O 0.97%), Brookfield Infrastructure (BIPC 4.19%) (BIP 2.02%), and Enbridge (ENB 1.59%) are core p ...

These companies have excellent records of growing shareholder value. Volatility briefly returned to the stock market earlier this month. It was a reminder that sell-offs can happen at any time and without any notice. The speed of the most recent market sell-off and subsequent recovery also showed that it's good to have ready a list of stocks you'd buy during a sell-off so that you can pounce when the opportunity arises. Brookfield Infrastructure (BIPC 0.97%) (BIP 1.45%), Nucor (NUE 0.01%), and NextEra Energ ...

Brookfield Infrastructure offers investors the best of both worlds. Brookfield Infrastructure (BIPC -1.84%) (BIP -2.22%) isn't your typical high-yielding dividend stock. The company, which yields over 4%, is also growing briskly. That was evident in the second quarter when its funds from operations (FFO) increased by 10%. The global infrastructure operator sees more high-powered growth ahead. That should give it the fuel to continue increasing its high-yielding dividend and produce strong total returns. A s ...

Financial Data and Key Metrics - Funds from operations (FFO) for Q2 2024 were $608 million, a 10% increase YoY, driven by organic growth and recent acquisitions [3] - Utilities segment FFO declined to $180 million from $224 million YoY due to capital recycling and higher interest costs, but base business grew organically due to inflation indexation and $450 million of capital commissioned into the rate base [4][5] - Transport segment FFO increased 60% YoY to $319 million, driven by acquisitions and a 15% tariff increase in the Brazilian rail and logistics operation [6] - Midstream segment FFO was $143 million, ahead of prior year levels excluding capital recycling, with strong demand in North American gas storage [6] - Data segment FFO grew 8% YoY to $78 million, supported by acquisitions and strong leasing activity in data centers [7] Business Line Performance - Utilities: Organic growth supported by inflation indexation and capital investments, partially offset by capital recycling and higher interest costs [4][5] - Transport: Strong performance from global intermodal logistics and Brazilian rail operations, with 9% organic growth driven by inflationary tariff increases [6] - Midstream: Benefited from strong demand and customer activity, particularly in North American gas storage, with accretive commercial agreements and capital projects [6] - Data: Growth driven by acquisitions and strong leasing activity, with investments in hyperscale data centers and strategic land acquisitions [7][13] Market Performance - North American power demand growth created opportunities for midstream assets, with several accretive commercial agreements secured [6] - Global data center platform saw strong momentum in leasing activity, driven by AI investment and customer demand for processing and storage capacity [7] Strategic Initiatives and Industry Competition - Focus on tuck-in and organic growth opportunities, with $4 billion in follow-on acquisitions completed in 2024, including data center sites and a stake in Brazilian rail and port logistics [12][13] - Large project backlog increased 15% YoY to $7.7 billion, with significant investments in midstream and data center growth [13] - Capital recycling remains active, with $1.4 billion generated YTD and $2.5 billion expected from advanced asset sales [15] - Strong alignment with global megatrends (digitalization, decarbonization, deglobalization), particularly in digitalization and decarbonization [16][17] Management Commentary on Operating Environment and Outlook - Management highlighted strong financial and operating results, with a focus on capitalizing on favorable debt markets and maintaining a strong balance sheet [3][8][11] - Expectation of increased M&A activity in H2 2024 due to improved interest rate environment and industry tailwinds like AI [14][16] - Significant opportunities in AI infrastructure, including power, transmission, and natural gas infrastructure to support data centers [20][21] Other Key Information - Completed $5 billion of non-recourse financing during the quarter, focusing on right-sizing capital structures, maturity extensions, and opportunistic repricing [8][9][10][11] - Corporate liquidity stands at $1.9 billion, with no corporate maturities until 2027 [11] Q&A Summary Question: Opportunities tied to AI in utilities and natural gas sectors - AI infrastructure includes power, transmission, and natural gas to support data centers, with opportunities in gas storage and movement [20][21] - Natural gas and nuclear may be needed to meet power demands for large data centers, creating investment opportunities [21] Question: Capital deployment and guardrails for Intel-like deals - Unlimited capital appetite for similar deals, with strong interest from global LP base [22] - Counterparty strength is a key limiting factor, with potential involvement from governments [23] - Similar structures applicable outside tech, such as hydrogen and decarbonization projects [24] Question: Feedback on Intel deal and BIP's participation in future deals - Private investors show more patience for long-lead development deals, while BIP offers a diversified portfolio balancing cash flow and growth [27][28] - Intel deal expected to be high-returning, with benefits expected in a few years [28] Question: Use of $2.5 billion asset sale proceeds - Proceeds likely redeployed into higher-earning investments, with potential to exceed $2.5 billion [29][30] - Focus on acquiring high-quality assets with returns around 15%, then selling at lower returns [30] Question: Geographies and subclasses with strong valuations - Balanced pipeline across Asia-Pac, North America, and Europe, with improving sentiment in Brazil [31][32] - U.S. and Europe remain deep markets for divestitures [32] Question: M&A activity in midstream sector - Midstream sector sees strong buyer interest, with opportunities for new investments and capital recycling [34][35] - Natural gas storage business is a mature asset potentially up for sale or partnership [36] Question: Data center development pipeline and self-funding strategy - Active development in multiple regions, with construction underway in South America, U.S., Europe, and Asia [38] - Capital recycling initiatives underway, with potential for programmatic sales to investors [39]

Brookfield Infrastructure Reports Second Quarter 2024 Results "We delivered strong second-quarter results driven by robust organic growth and the positive impact of several years of outsized capital deployment," said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure Partners. "The outlook for growth is very favorable as the surge in AI adoption is generating substantial capital deployment opportunities across our data, electric utility and natural gas sectors." Brookfield Infrastructure repo ...