Brookfield Infrastructure to Outperform S&P 500 with 13.1% Annual Total Return

Brookfield Infrastructure has delivered market-crushing returns since its formation, with expected annual earnings growth of over 10% and a high-yielding, steadily rising dividend. The company's focus on acquiring and expanding high-quality infrastructure businesses should drive steady cash flow growth, supported by long-term contracts and government-regulated rate structures. This combination of high income and high growth makes Brookfield a strong candidate to outperform the S&P 500 over the next decade.

Brookfield Infrastructure (NYSE: BIPC) has consistently delivered market-crushing returns since its formation, with expected annual earnings growth of over 10% and a high-yielding, steadily rising dividend. The company's focus on acquiring and expanding high-quality infrastructure businesses should drive steady cash flow growth, supported by long-term contracts and government-regulated rate structures. This combination of high income and high growth makes Brookfield a strong candidate to outperform the S&P 500 over the next decade.

Brookfield Infrastructure currently yields 4.3%, more than three times higher than the S&P 500 (SNPINDEX: ^GSPC) (1.2% yield) [1]. The global infrastructure giant has increased its payment in all 16 years since its formation, growing it at a brisk 9% compound annual rate during that period. The company expects to increase its payout at a 5% to 9% annual rate over the long term [1].

Brookfield invests in strategically positioned infrastructure poised to benefit from global megatrends, including decarbonization, deglobalization, and digitalization. The company expects to grow its funds from operations (FFO) per share at a more than 10% annual rate in the coming years [1]. Multiple growth drivers fuel this view, including its existing infrastructure portfolio generating durable and growing cash flows, backed by inflation-linked rate structures and rising volumes as the global economy expands. Additionally, Brookfield has a large backlog of organic expansion projects currently under construction, including two U.S. semiconductor fabrication facilities and several data centers around the world. The company also routinely makes acquisitions to add new sources of growth [1].

Brookfield's combination of yield and growth positions it to produce strong total returns in the coming years. The company's focus on high-quality infrastructure businesses and its ability to generate steady cash flows make it a strong candidate for outperforming the S&P 500 over the next decade.

References:
[1] https://finance.yahoo.com/news/3-great-high-yield-dividend-070100928.html