Friday, July 10, 2020

Recent buy: Brookfield Infrastructure Partners (BIP)

Last week I purchased 32 shares of Brookfield Infrastructure Partners (ticker: BIP) for $41,62 per share. BIP pays a quarterly dividend of $0,485 so this purchase adds roughly $62 per year before taxed and FX-change.

The reasons of my purchase are as follows:
  • BIP operates a diversified collection of assets generating resilient long-term cash flows. Regulatory frameworks and contracted capacity leads to predictable cash flows.
  • Assets are in various businesses like transportation, utilities, energy, data infrastructure which can be described as recession resistant.
  • Its business is diversified over different areas, but also in a geographic manner. 
  • No significant debt maturities in next five years.
  • Yield of 4,7%.
  • Dividend growth of more than 9% per year in the last five years.
  • Price-to-AFFO is around 16x, which seems like a fair price (but who knows!)
  • Desire to further increase the diversification in my own portfolio by adding another utility-like business.
Thanks for reading! What do you think of my purchase?

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