If I Could Only Buy and Hold a Single Stock, This Would Be It.

Core Viewpoint - Brookfield Infrastructure is positioned as a strong investment opportunity due to its high-yielding dividends, stable cash flow, and exposure to significant global megatrends, which are expected to drive growth and returns over the coming years [2][12]. Dividend and Income Generation - Brookfield Infrastructure has increased its dividend for 16 consecutive years, with a compound annual growth rate of approximately 9% during this period, currently yielding over 4%, significantly higher than the S&P 500's yield of around 1.2% [4][6]. - The company distributes 60% to 70% of its stable cash flow in dividends, supported by a strong investment-grade balance sheet, making its dividend payout very secure [6]. Cash Flow Stability - Approximately 85% of Brookfield's funds from operations (FFO) come from contracted or regulated assets, with 75% having no volume or price exposure, and 85% of its FFO is indexed to or protected from inflation [5][6]. - The company anticipates annual FFO per share growth of 4% to 6% from inflation-linked contracts and GDP exposure without requiring additional capital investment [7]. Growth Opportunities - Brookfield has a backlog of nearly $8 billion in capital projects, primarily focused on data infrastructure, which is expected to contribute an additional 2$100 trillion in global infrastructure investment over the next 15 years, including over $8 trillion for AI-related infrastructure in the next 3 to 5 years, positioning Brookfield to capture a significant share of this market [9]. Future Projections - Investments in capital projects and acquisitions are projected to push Brookfield's FFO growth rate above 10% annually, supporting continued dividend growth in the range of 5% to 9% per year [11]. - The combination of high-yield dividends and robust growth driven by global megatrends suggests potential total returns in the mid-teens, with a lower risk profile [12].