Brookfield Infrastructure Achieves Over 14% Annualized Return, Expects FFO Per Share Growth Over 10%
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Annualized Return Performance: Since its inception in 2008, Brookfield Infrastructure has achieved an annualized total return exceeding 14%, indicating that a $1,000 investment could grow to $25,642 over 25 years, showcasing its strong wealth creation capability.
- FFO Growth Expectations: The company anticipates a long-term FFO per share growth rate exceeding 10%, driven by inflation-linked rate increases, volume growth from global economic expansion, and strategic acquisitions, further solidifying its market position.
- Dividend Growth Plan: Currently offering a nearly 4% dividend yield, Brookfield plans to increase dividends by 5% to 9% annually, which not only enhances investor return expectations but also reflects the company's confidence in its future profitability.
- Investment Strategy Positioning: The company has strategically repositioned its portfolio to capitalize on several major growth megatrends, including AI infrastructure, which is expected to drive future earnings growth and further enhance shareholder value.
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.
