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The core of my retirement dividend growth portfolio is finding great long-term investments that I can hold for years, if not decades. I'm looking for stocks that can generate generous, safe, and exponentially growing income in all manner of economic environments, and to buy them at attractive prices.

Chart

BIP Total Return Price data by YCharts

In the past, I've explained why Brookfield Infrastructure Partners (BIP) is my all-time favorite high-yield income growth investment. That's not just because since its IPO Brookfield has managed to crush other utilities as well as the broader S&P 500.

Rather, it's because Brookfield Infrastructure has what I consider to be an unbeatable combination of world class management, a wide moat, cash rich asset base, and numerous growth catalysts that should allow it to continue generating extraordinary returns (12% to 15% annually for decades to come). Let's take a look at the five reasons that I'm more convinced than ever that Brookfield Infrastructure Partners is potentially the greatest long-term high-yield income growth investment in the world. One that represents a good buy today for almost any diversified income portfolio.

1. The Ultimate Wide Moat Business Model

The essence of any good income growth investment is the core business model. Specifically, a stable source of recurring cash flow, hopefully from wide moat assets that can't be easily disrupted by rivals.

Utilities are usually a great wide moat business thanks to their defensive (recession resistant) nature, and often represent government sanctioned monopolies. This means that they represent the ultimate wide moat business. However, the downside to most regulated utilities is that they usually are highly concentrated by geography, and have slow to modest growth potential.

Brookfield Infrastructure Partners, on the other hand, is the most diversified utility in the world. This creates far stronger growth potential than most utilities thanks to its ability to tap into not just numerous fast growing countries, but also every corner of the global infrastructure market.

(Source: Brookfield Infrastructure Fact Sheet)

Specifically, Brookfield Infrastructure owns 35 assets worth $29 billion on five continents including:

  • $4.8 billion regulated utility rate base.
  • 2,200 km of electrical transmission lines in North and South America.
  • 2,000 km of natural gas pipelines in South America.
  • 3.4 million global electricity and natural gas connections.
  • 880,000 smart electric meters in the UK.
  • 10,300 km of railroads in South America and Australia.
  • 37 ports in North America, Europe and Asia.
  • 4,000 km of toll roads in South America and India.
  • 15,000 km of natural gas pipelines in North America.
  • 600 billion cubic feet of natural gas storage in North America.
  • 20,800 water and waste treatment connections.
  • 5,000 km of fiber optic lines in Europe.
  • 7,000 telecom towers in Europe.

Its presence in regulated utilities, energy transportation, general transportation, and communications infrastructure means it enjoys extremely stable and recurring funds from operation (FFO), and adjusted funds from operation (AFFO). This is ultimately what funds it distribution, a tax deferred form of dividend (more on this in the risk section).

How stable is Brookfield's cash flow? Well, consider this: 95% of its FFO is either under long-term contract (for up to 20 years), or in regulated utility industries. 75% of its cash flow is indexed to inflation and 65% has no volume risk. What's more it does business almost exclusively with investment grade counterparties (such as regulated utilities) meaning default risk on its contracts is very low.

(Source: Brookfield Infrastructure Investor Presentation)

Best of all, the relatively low maintenance costs of the infrastructure it owns means that Brookfield enjoys high and stable EBITDA margins. That in turn translates into approximately 13% AFFO yield on new investments which is far above its weighted average cost of capital.

Approximate Weighted Average Cash Cost Of Capital

5.2%

Cash Yield On Invested Capital

13.0%

Gross Investment Profitability

7.8%

(Sources: earnings supplement, FastGraphs, Gurufocus)

For context, most pass-through income stocks (like REITs, MLPs, LPs, and YieldCos) are happy to generate 2% to 5% gross cash yields on invested capital. However, thanks to Brookfield's combination of cash rich assets, bought at extremely attractive valuations (opportunistically), Brookfield is one of the most profitable pass-throughs (or utilities) in not just America, but the world.

(Source: Brookfield Infrastructure earnings supplement)

This is why it's been able to generate such impressive distribution growth since its 2008 IPO (11.4% CAGR). That includes increases even during the worst financial crisis since the Great Depression. As a result, Brookfield has managed to crush management's long-term guidance of 12% to 15% annual total returns by a wide margin.

(Source: Brookfield Infrastructure Fact Sheet)

And while it's unlikely that Brookfield Infrastructure will be able to continue generating 20% annual total returns going forward, I am highly confident that it will be able to achieve its ambitious 12% to 15% return target with ease. That's due to its biggest competitive advantage (world class management team), combined with the longest growth runway of any stock I know of.

2. Strong Growth Catalysts And A World Class Management Team

Long-term investing success requires a lot of factors, but perhaps the most important is good management. After all, this is who investors are trusting with their hard earned money to adapt to changing industry conditions, allocate their capital profitably, and ultimately achieve safe and sustainable payout growth.

(Source: Brookfield Investor Presentation)

Brookfield Infrastructure is a Limited Partnership or LP and is part of the Brookfield Asset Management (BAM) empire. BAM is the world's oldest, largest, and most trusted infrastructure/utility/real estate manager with:

  • 115 years of experience
  • 28,000 corporate employees (over 80,000 who indirectly work for it) in more than 100 offices in over 30 countries
  • $285 billion in assets under management

The way it works is that BAM puts together lucrative infrastructure deals which it then gives BIP a cut of, at highly favorable terms. BIP meanwhile buys into these deals with capital raised from four sources:

  • retained cash flow (targets 60% to 70% FFO payout ratio)
  • recycled capital (selling assets at huge profits)
  • debt (mostly non recourse, asset level long-term fixed bonds)
  • equity (new units sold at accretive prices)

This capital then buys the high-quality, recurring cash flow from the infrastructure/utility assets which supports growth in cash flow per unit and thus stable and secure distribution growth. Meanwhile, BAM, as 30% owner of BIP's limited units, as well as holder of its general partner stake and incentive distribution rights or IDRs, sees about 55% of BIP's cash flow return to it. This in turn helps to fund further profitable deals in the future.

BAM also gets a 1.25% base management fee (on asset value plus net corporate level debt). In this way, BIP can be thought of as similar to an MLP, with BAM serving as its sponsor. However, there are some important differences to BIP's corporate structure.

(Source: Brookfield Infrastructure Investor Presentation)

Most notably is the fact that BIP's IDRs are capped at 25% unlike most MLPs that have 50% caps (for those that have IDRs). More importantly, BAM designed BIP to avoid UBTI, making it safe to own in retirement accounts. In fact, as I'll explain in the risk section, BIP's unique structure makes it ideal for ownership in IRAs or 401Ks.

What do BIP investors get for this affiliation with Brookfield Asset Management (and fees that amount to about 15% of AFFO)? How about 160 corporate employees that now work for Brookfield Infrastructure full time. That includes 13 top executives with an average of over 20 years of industry experience, including operating in complex emerging markets.

(Source: Brookfield Infrastructure Investor Presentation)

The Brookfield management team has proven itself masters of profitable investing. Specifically, they buy highly undervalued infrastructure/utility assets opportunistically such as when a country is in a recession and valuations are low. They then expand those assets through organic growth investment, making them more valuable. And when the time and opportunity is right, they flip those assets generating an average of 25% annualized internal rates of return on $3.8 billion in asset sales over the past decade.

Thanks to its most recent asset sale, which added $1.3 billion of cash to its balance sheet, Brookfield Infrastructure now has record liquidity of over $4.2 billion.

(Source: Brookfield Infrastructure earnings supplement)

Part of that is slated for the LP's $2.5 billion organic growth backlog, which are expansions of current assets slated to be completed within two to three years. Management believes that organic growth alone is sufficient to allow it to achieve its long-term payout growth target of 5% to 9%, which would be among the highest in the utility industry.

(Source: Brookfield Infrastructure Investor Presentation)

That impressive distribution growth, when combined with the generous current yield, is why management thinks it can achieve 12% to 15% total returns over the long term. For context, the S&P 500's total return since 1871 has been 9.2%.

However, the biggest reason to love Brookfield Infrastructure is that management's proven ability to make highly profitable acquisitions means that 7% payout growth is likely the low end of distribution growth that investors can expect. In fact, BIP's long-term growth runway is so large that the LP can likely achieve payout growth closer to the high end of its guidance (9% or even 10%) not just for the next few years, but potentially for 50+ years.

3. Latest Deals Exemplify Brookfield's Decades Long Growth Runway

In June of 2018, Brookfield struck a $1.1 billion deal with AT&T (T) to acquire 31 global data centers. AT&T will remain the anchor tenant of these centers, and help provide ongoing service to over 1,000 existing customers that are currently using them (under long-term contracts). Data centers and telecom are just one of three major future mega trends that BIP is targeting.

According to BIP CEO Sam Pollock, data "is the fastest growing commodity in the world, with global usage growing exponentially, which requires massive investment in networks to store and transmit it, like fiber and telecom, where we have already made investments and remain focused on growing our portfolios."

BIP first got into data/telecom when it invested in TDF, the largest independent communications tower infrastructure business in France. That brought with it 6,700 telecom towers and 3,000 miles of fiber optic cables. Since then BIP has kept building out these data assets, and currently plans to invest $1.3 billion in new fiber optic lines.

(Source: Brookfield Infrastructure Investor Presentation)

Over the next 10 years, the LP expects its ongoing investments into data/telecom to mean that by 2028 fully 25% of its cash flow will be coming from this fast growing industry. One that is likely to grow exponentially for as far as the eye can see.

Brookfield's latest deal is the $3.3 billion acquisition of Canadian midstream assets from Enbridge Inc. (ENB). This will mean Brookfield is acquiring 19 natural gas processing and liquids handling facilities and adding 2,200 miles of gas and NGL pipelines to its existing midstream portfolio. According to BIP's CEO:

"This investment represents an exciting opportunity to invest in scale in one of North America's leading gas gathering and processing businesses based in Western Canada. The business is strategically positioned for the continued development of the prolific Montney Basin. Cash flows from the business are anchored by a firm contract profile with a weighted average life of 10 years.” - Sam Pollock

(Source: Natural Gas Intel)

Canada's Montney shale formation is similar to America's own hyper prolific Marcellus/Utica shale of Pennsylvania, Ohio, and West Virginia. Montney is estimated to hold up to 700 trillion cubic feet of gas. And thanks to highly favorable low cost economics, Montney is helping companies like Encana (ECA) generate 30% annual production growth. The midstream assets that Brookfield is acquiring not just service the Montney but also includes pipelines that link it to major markets in the Pacific Northwest, America's Midwest, and Western Canada.

Brookfield Infrastructure is getting a 30% cut of this deal in return for a $500 million cash payment, funded by the sale of its Chilean electrical transmission business. Or to put another way, BIP is funding about 15% of the deal but getting a 30% equity stake in the highly stable, long-term contracted cash flow these assets represent. That's exactly the kind of sweetheart deal that makes Brookfield's close affiliation with its sponsor so valuable. The deal will close in two parts, with Canadian approval expected by the end of 2018 and US federal approval coming by mid-2019.

(Source: US Energy Information Administration)

Energy infrastructure such as these midstream assets is another of Brookfield's super catalysts. That's because according to the US Energy Information Administration, American oil & gas production is expected to continue growing through 2030, and 2050, respectively. This in turn is why the Interstate Natural Gas Association Of America, or INGAA, estimates that through 2035 $791 billion in new midstream infrastructure will be necessary to service this increased production.

(Source: INGAA)

And speaking of North American and developed nation infrastructure, this is another major growth market for Brookfield. That's because, according to PricewaterhouseCoopers, by 2025, the US, Canada, Europe, and Australia will need $5.5 trillion in additional infrastructure investment. That's to upgrade and maintain their existing assets, much of which is 30 to 50 years old.

(Source: Brookfield Infrastructure Investor Presentation)

But of course, the biggest growth potential of all is in fast growing emerging markets, such as India, Latin America, and Asia. However, Asia is by far the biggest prize for Brookfield with its CEO explaining:

"Asia is the world's largest and fastest growing market, with current GDP growth of nearly 6%. It is also estimated that by 2030, the middle class in Asia is expected to be over 150% of what it is today at almost 3.5 billion people. With this growth and Brookfield's established presence in Asia, we will look to allocate capital to fund the build-out and maintenance of critical infrastructure across all sectors where we invest." - Sam Pollock

(Source: Brookfield Infrastructure Partners Investor Presentation)

The combination of Asia's vast population base, fast population growth, the world's best economic growth rate, and rapidly urbanizing populace means that Asia represents BIP's greatest overall investment opportunity. One that is expected to drive decades of strong growth. The LP is already breaking into Asia with its $100 million investment in Indian toll roads. It's also on the hunt for Indian telecom towers and fiber optic assets.

Meanwhile, Brookfield continues to open offices in China and conduct extensive research so it can start making substantial infrastructure investments there within the next three to five years. All told, by 2028, BIP expects 25% of its cash flow to come from Asia.

And Asia is hardly the only international growth opportunity. Thanks to fast growth in all parts of the world, including Latin America and Africa, the G20 estimates that by 2040 nearly $100 trillion of new global infrastructure investments will be needed. For context, that's about 130% the size of the entire Global GDP in 2017, and 12,400 more than BIP's total investments to date ($7.6 billion).

Ultimately, this means that anyone looking for a good way to profit from global economic growth in general, and emerging market, data, and North American energy growth in particular, need look no further than Brookfield Infrastructure Partners. Because when you factor in this stock's massive and decades long growth runway, the result is the easiest way to generate generous, safe, and fast income growth while enjoying market crushing returns for decades to come.

4. Payout Profile: The Easiest Way I Know To Earn Market Crushing Returns For The Next 50 Years

Stock

Yield

AFFO Payout Ratio

10-Year Projected Dividend Growth

10-Year Projected Total Return

Brookfield Infrastructure Partners

4.6%

65.2%

5% to 9%

12% to 15%

S&P 500

1.8%

40%

6.2%

8.0%

(Sources: earnings supplement, management guidance, Gurufocus, FastGraphs, Multpl, CSImarketing)

The most important aspect of any income investment is the payout profile which consists of three parts: yield, safety, and long-term growth potential.

Brookfield's 4.6% yield is not just over three times that of the S&P 500, but it's also 1.2% above the average utility's 3.4%. More importantly, with an AFFO payout ratio of just 65.2%, that payout is extremely well covered by the LP's stable and recurring cash flow.

Of course, given the highly capital intensive nature of this industry, the other half of the payout safety is the balance sheet. If a utility has dangerous amounts of debt, then not just can the payout be put in jeopardy, but its growth potential can also be constrained.

Stock

Debt/ EBITDA

EBITDA/Interest

Debt/Capital

S&P Credit Rating

Average Interest Rate

Brookfield Infrastructure Partners

4.0

5.4

41%

BBB+

4.4%

Average Utility

3.6

5.4

49%

NA

NA

(Sources: Gurufocus, Morningstar, Fastgraphs, earnings supplement)

Fortunately, Brookfield has a very strong balance sheet, with a leverage ratio that's just slightly above that of the average utility and below the 4.4 average of MLPs. In addition, its highly stable and strong interest coverage ratio, along with its affiliation with BAM, gives it a strong investment grade credit rating. This allows it to borrow at low rates, resulting in low costs of capital and those sky-high gross cash yields on investment.

(Source: Brookfield Infrastructure Investor Presentation)

90% of BIP's debt is long-term fixed rate (average duration 8 years). This means that 57% of its debt isn't coming due until 2023 or beyond. More importantly, 86% of its debt is asset level, non-recourse, and self amortizing.

This means that BIP's corporate level (what investors are liable for) leverage ratio is just 0.5. The way Brookfield Infrastructure operates is that it sells long-term bonds to finance individual assets. Those loans are non-recourse and self amortizing, meaning that the cash flow generated by each asset pays off the debt over the length of its contracted cash flow. In the meantime, because each asset is itself an LP, this means that in the event of a debt default (worst case scenario), borrowers can't go after Brookfield Infrastructure investors. Or to put another way, BIP funds its rapid growth while creating a highly dependable moat around its LP level cash flow, thus further increasing the safety of its payout.

The growth rate of that payout is the ultimate reason for owning this stock. Thanks to its numerous and massive long-term growth catalysts, analysts think that BIP will be able to achieve 9% long-term distribution growth over the next decade. There may be some utilities like Dominion Energy (D) and NextEra Energy (NEE) that are growing their dividends faster in the next few years (10% and 13%, respectively). However, no utility has the kind of global growth potential that can allow it to sustain high single digits payout growth for the next 10 years, much less the next 50+.

The bottom line is that hitting the high end of management guidance would mean about 13.6% long-term total return potential from today's valuation. And given Brookfield Infrastructure track record of under-promising and over-delivering, I wouldn't be surprised if it might be able to achieve slightly faster distribution growth in the coming years (10%).

5. Valuation: Despite Recent Pop BIP Is Still A Buy

ChartBIP Total Return Price data by YCharts

Up until recently, it's been a rough few months for Brookfield Infrastructure unit holders, with flat total returns over the past year. This underperformed most utilities as well as the market in general. However, the news of the Enbridge deal has caused BIP's price to pop (almost 6% the day the news broke). Fortunately, the stock remains a good buy, even after this sharp short-term jump.

Now it should be said that there's no 100% objectively correct way to value a stock. There are dozens of difference methods, including backwards and forwards looking ones, each with their own strengths and weaknesses.

This is why I use several methods working in concert to determine whether an income stock is trading at a high enough margin of safety to make it worth recommending or buying for my own portfolio.

The first approach is the total return potential from the payout profile. I want any stock I recommend to have a realistic chance of beating the market. And personally, I am looking for stocks with 10+% total return potentials. On both counts, Brookfield Infrastructure passes with flying colors.

The second approach I use for a stock like BIP is looking at the price to cash flow. Specifically, I use that to estimate what growth rate is priced into the stock. This allows me to estimate what chance an investment has of beating expectations and achieving multiple expansion and thus superior returns over time.

Stock

P/FFO

Implied 10-Year Growth Rate

Yield

Historical Median Yield

Brookfield Infrastructure Partners

12.0

1.8%

4.6%

4.5%

(Sources: Gurufocus, Fastgraphs, earnings supplement, Benjamin Graham)

On an annualized basis, BIP is trading at just 12 times FFO, which is very low when compared to either utilities or MLPs. For example, the average MLP currently trades at about 12 times cash flow. However, most MLPs doesn't have the "buy and hold forever" potential of Brookfield Infrastructure since the age of oil & gas will one day end, while demand for necessary infrastructure is eternal.

Today, BIP's price/cash flow implies a long-term (10 year) FFO/share growth rate of just 1.8%. That's about three times less than what management's organic growth backlog alone is capable of generating. Factor in major needle moving deals like it just inked with AT&T and Enbridge, and I think Brookfield Infrastructure will have no trouble clearing this ridiculously low hurdle rate.

Finally, the last valuation technique I use is to compare an income stock's yield to its historical yield, both the five-year average and the long-term (13 year) median value. This is for two reasons. First, for highly stable businesses like this, yields tend to be cyclical but mean reverting. This means they cycle around a relatively fixed point that approximates fair value over time.

The reason I use both a 5-year and 13-year (10 year) yield is to ensure that some sector wide catalyst (such as record low interest rates) haven't skewed the results.

(Sources: Simply Safe Dividends)

In the case of Brookfield Infrastructure Partners, the 10-year median yield and 5-year average yield are both about 4.5%. Over the short term, a stock's valuation might be thrown off by investor sentiment. But over such long time periods, only fundamentals matter. This means that 4.5% yield is likely a good proxy for BIP's intrinsic or fair value.

Thanks to the stock's recent 6% spike, this would imply that Brookfield Infrastructure is trading at roughly fair value. However, I still have no qualms about recommending it today for two reasons. First, paying just 12 times cash flow for a blue chip of this caliber, one with such strong long-term growth and total return potential, is likely to prove a smart decision.

In addition, under the Buffett principle of "it's better to buy a wonderful company at a fair price than a fair company at a wonderful price", I am inclined to recommend any grade A blue chip at fair value or better. Thus, when combining all three valuation methods with Brookfield Infrastructure's incredibly strong fundamental growth thesis, I can whole heartily recommend it to any income investor. That is of course, assuming you are comfortable with its risk profile.

Risks To Consider

While I consider Brookfield Infrastructure Partners to be the quintessential sleep well at night or SWAN stock, as Charlie Munger, Buffett's right hand at Berkshire Hathaway (NYSE:BRK.A) (BRK.B), likes to say "invert, always invert". This means looking at the potential negatives of any investment to understand its risk profile.

Let's start out by looking at the most confusing aspect of Brookfield's business model, which is its tax implications. While the LP is headquartered in Bermuda, due to its affiliation with Canadian Brookfield Asset Management, investors are still facing a 15% foreign withholding (except in retirement accounts like IRAs or 401Ks). Fortunately, US investors qualify for a dollar for dollar tax credit to offset their US dividend tax bill. However, each individual/couple can only claim $300/$600 per year across all their portfolios worth of these tax credits while using the simpler 1040 tax form. For figures above these limits, you need to use the more complex Form 1116.

Another thing to know about BIP is that because it's structured as an LP whose assets are themselves LPs, it has a rather unique tax structure. Specifically, it uses a K1 form, which many investors dislike due to added tax complexity.

In the case of Brookfield Infrastructure, that complexity is further complicated by being designed to avoid generating unrelated business taxable income or UBTI. This makes it safe for owning in IRAs or 401Ks. The downside is that it also means that BIP's distributions are considered ROC by the IRS (lowers your cost basis), but also that the LP passes on income to investors.

What that means is that your actual cost basis doesn't automatically fall by the distribution amount (deferred tax liability) like it does with most MLPs. Rather the cost basis is lowered by the distribution amount, and then raised by your taxable share of the LP's pass-through income.

For example, say you own $10,000 of BIP that you purchase at today's price. This will generate $460 in annual distributions which will lower your cost basis by that amount (deferred tax liability). However, if your share of LP's taxable income is $700, and you are in the 22% marginal income tax bracket (like most Americans), then you would owe the IRS $154 in taxes. Effectively, this means that your cost basis would be reduced not by $460 but by $306.

While I personally think that Brookfield's long-term income growth and total return potential makes it worth this rather complex and confusing tax structure, my readers have often cited it as the biggest reason they avoid it.

What about risks to the LP itself? Well, there are several you need to be aware of. The first is currency risk, which is the downside of being such a globally diversified utility/infrastructure giant. This is because today 45% of the LP's cash flow comes from emerging markets, with large exposure to Brazil.

  • Brazil: 34% of FFO
  • US: 22%
  • Australia: 18%
  • UK: 15%
  • Rest of World: 11%

Brookfield uses 12 to 24 month hedges to minimize the fluctuations in its foreign cash flows.

(Source: Brookfield Infrastructure earnings supplement)

However, even with these hedges, currently just 61% of BIP's FFO is in US dollars and most of its hedges pertain to developed market currencies such as the Pound, Canadian dollar, and Australian dollar. It doesn't hedge most of its emerging market currency exposure, including in Latin America and India. In Q1 2018, negative emerging market currency translation resulted in a -4.6% growth headwind.

The good news is that the Enbridge deal will increase the cash flow coming from more stable currencies. The downside is that even once the deal is concluded in 2019, Brookfield will still have potentially significant currency exposure to emerging markets, which are its largest potential growth sources.

Emerging market currencies can be extremely volatile relative to the dollar, especially during times when US interest rates are rising (as they are now). This means that Brookfield potentially faces growth headwinds because its emerging market revenue might translate into less USD when it comes time to report earnings and pay its distributions. Fortunately, currency fluctuations tend to be mean reverting over time (cancel out), and as emerging market economies develop, their currencies tend to become more stable. And thanks to its low payout ratio, any potential short- to medium-term growth headwinds created by currency volatility are unlikely to threaten the payout's safety, just its potential growth rate.

Finally, we can't forget that there is a lot of execution risk that comes with owning, building, and investing in global infrastructure. That includes both in emerging markets and developed economies.

For example, management needs to be able to bring its organic growth pipeline online in a timely fashion and on budget. However, volatile input costs such as steel prices (a global commodity) can end up increasing project costs. And regulatory challenges can result in costly delays that mean that cash flow from its backlog might be late. This can impact its short-term results and potentially result in slower than expected payout growth (lower end of guidance).

And of course, when dealing with emerging market infrastructure, there is even more complexity. Brookfield has the best track record of successfully navigating the byzantine regulatory environment of emerging market bureaucracy. However, even they can at times be tripped up by delays in permits, deal closings, and sometimes outright cancellations. For instance, in 2017, Brookfield attempted to acquire partial ownership in 40,000 telecom towers in India from Reliance Communications. However, that deal was ultimately contingent upon Reliance Coms merger with Aircel, which was delayed by regulators long enough to kill the deal. As a result, Brookfield's purchase fell through as well.

This shows that, while the LP's growth potential in countries like India and China are enormous, politics, regulations, and bureaucracy can end up creating increased complexity that makes perfect execution impossible.

Bottom Line: Brookfield's Latest Deals Mean The World's Best High-Yield Income Growth Stock Just Keeps Getting Better

While no stock is actually perfect, especially for all investors, Brookfield Infrastructure Partners is the closest candidate I've yet found. The LP's combination of world class management, a wide moat, cash rich business model, and several mega growth catalysts mean that it should easily be able to generate market crushing returns for decades to come.

Brookfield's latest two deals, tapping into the mega trends of global data growth and North America's epic energy boom, is a clear sign that Brookfield's growth thesis as strong as ever. And while the price is up recently, at today's valuation, I still consider BIP a good buy for almost any income investor looking to enjoy generous, safe, and fast growing payouts for the foreseeable future.

Disclosure: I am/we are long BIP, ENB, D, T.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source : https://seekingalpha.com/article/4185939-5-reasons-brookfield-infrastructure-partners-might-worlds-best-high-yield-stock

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