This High-Yield Stock Wants to Make a Big Splash in Water

Brookfield Infrastructure Partners L.P. (NYSE: BIP) likes to buy assets that generate steady cash flow because that gives it the money to support its generous 3.9%-yielding distribution to investors. That approach often leads it to acquire utility-like businesses such as power lines, ports, and pipelines since these assets generate relatively stable cash flow backed by consistent volume or contractual obligations.

That said, the company's aim isn't to pay a bond-like yield. Instead, its target is to increase the payout at a 5% to 9% annual rate. That leads it to buy assets that have upside potential. Water is one area it believes has untapped upside, which is why it's currently scouring the globe in search of investment opportunities to add some water infrastructure businesses to its portfolio.

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Source: Fool.com