Brookfield Infrastructure Achieves Nearly 14% Annual Returns, Potentially Growing $1,000 to $25,642 in 25 Years
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Wealth Creation Ability: Since its inception in 2008, Brookfield Infrastructure has achieved nearly a 14% annualized total return, turning a $1,000 investment into approximately $10,140 over 16 years, showcasing its strong wealth creation potential.
- Sustained Growth Expectations: The company anticipates FFO per share growth exceeding 10% annually in the long term, driven by inflation-linked rate increases, volume growth from global economic expansion, and acquisitions, among other factors.
- Dividend Growth Outlook: With a current yield of nearly 4%, Brookfield expects to increase its dividends at an annual rate of 5% to 9%, further enhancing investor return expectations alongside stable earnings growth.
- Strategic Positioning: The company has strategically positioned its portfolio to capitalize on several major growth megatrends, including AI infrastructure, projecting a medium-term FFO per share growth rate of around 14%, laying the groundwork for sustained future returns.
Analyst Views on BIP
Wall Street analysts forecast BIP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIP is 41.00 USD with a low forecast of 37.00 USD and a high forecast of 44.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 34.690
Low
37.00
Averages
41.00
High
44.00
Current: 34.690
Low
37.00
Averages
41.00
High
44.00
About BIP
Brookfield Infrastructure Partners L.P. is a global infrastructure company that owns and operates long-life assets in the utilities, transport, midstream and data sectors across the United States, Asia Pacific, and Europe. The Company’s segments include Utilities, Transport, Midstream, and Data. The Utilities segment consists of regulated transmission (natural gas and electricity) and commercial and residential distribution (electricity, natural gas, and water connections) operations. The Transport segment includes infrastructure assets that provide transportation, storage and handling services for merchandise goods, commodities, and passengers. The Transport segment consists of diversified terminals, rail, and toll roads. The Midstream segment comprises systems that provide natural gas transmission, gathering and processing, and storage services. The Data segment includes critical infrastructure that provides telecommunication, fiber, and data storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
