Got $5,000? 3 Top Infrastructure Stocks to Buy for the Long Term
You probably don't think about how natural gas gets to your house or who owns the bridges and roads you drive over; you just assume that they will be there. And while you probably don't own a gas pipeline, a bridge, or a road, you can own a piece of them with investments in companies like Brookfield Infrastructure Corporation (NYSE: BIPC), Enbridge (NYSE: ENB), and Enterprise Products Partners (NYSE: EPD). And the best part? They all pay reliable dividends supported by the cash flows from the vital assets they own. They all trade for well under $100 per share, so a $5,000 investment could get you a lot of shares.
When it comes to infrastructure, it would be difficult to find a better all-in-one investment than Brookfield Infrastructure Corporation, which is selling for about $40 per share. Its portfolio of assets spans across North America (44% of funds from operations), Asia/Pacific (20%), South America (19%), and Europe (17%). That global diversification is just the start, because it further includes utilities, transportation (toll roads and bridges), energy infrastructure (pipelines), and data (data centers and cell towers). If you want a simple way to have broad exposure to infrastructure, this is probably the best game in town.
There is one drawback, though: Investors are fairly well aware of the benefits on offer here. That includes the benefit of having Brookfield Asset Management, a company with over 100 years of history overseeing global infrastructure assets, running Brookfield Infrastructure. As such, its shares are generally afforded a premium to the other options on this list, offering a comparably modest dividend yield of 3.5%. However, dividend growth has been a fairly robust 10% annualized since 2019. That makes Brookfield Infrastructure Corporation a particularly worthwhile option for growth and income investors. Investors may also want to consider Brookfield Infrastructure Partners (NYSE: BIP), which is essentially a share class of Brookfield Infrastructure that is structured as a master limited partnership (MLP).
Source Fool.com
