Better Buy: Brookfield Infrastructure Partners vs. NextEra Energy
Owning large and vital physical assets that throw off cash is the crux of the argument for buying infrastructure stocks. But there are different ways to go about investing in this area. And when it comes down to it, the key difference between Brookfield Infrastructure Partners (NYSE: BIP) and NextEra Energy (NYSE: NEE) boils down to how you want to go about investing in the space. Here's a primer to help you understand which one of these names would be a better fit for you.
NextEra Energy owns the largest electric utility in Florida. It's a great state to operate in because the population is growing as retiring Baby Boomers seek out warmer climates (and lower taxes). Basically, the trends here mean NextEra will have a growing customer base. The company further augmented its position in the state by acquiring a smaller Florida utility from The Southern Company not too long ago. There are two benefits there: It increases the company's scale, and allows it to put more capital to work, thus increasing its chances of getting regulatory rate hikes.
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Source Fool.com
