2 Infrastructure Stocks and 1 ETF to Buy in July
An infrastructure bill may soon become a reality, given how relentlessly President Biden is working to sign his multitrillion-dollar plan into law, and that's the only trigger infrastructure stocks now require to hit the next leg of their rally. I have three infrastructure picks on my radar this July: two top stocks that are about to report earnings and one exchange-traded fund (ETF) that's a fantastic way to play the infrastructure spending theme thanks to its size and diversity.
With Brookfield Infrastructure Partners (NYSE: BIP) (NYSE: BIPC) shares, you can gain exposure to several important industries within the infrastructure sector, many of which are also on Biden's spending list. Examples include transportation (rail, toll roads), utilities (electricity and gas transmission and pipelines), midstream energy (natural gas pipelines), and data infrastructure (telecom towers, fiber optic cable networks, data centers).
One common theme across its portfolio is that most of its assets are regulated or contracted. That means all Brookfield Infrastructure does is acquire and operate quality assets and churn its portfolio periodically to replace mature assets. In between, those assets generate steady cash flows for the company to support growth and dividends. In fact, Brookfield Infrastructure hasn't just paid out regular dividends but increased them every year so far -- between 2009 and 2021, its dividend grew at a compound annual rate of 10%, driven by 16% CAGR in its funds from operations (FFO).
Source Fool.com
