DLR - Brookfield Infrastructure Partners Dives Deeper Into Data to Keep Growing Its 4% Dividend
In late 2017, Brookfield Infrastructure Partners (NYSE: BIP) identified the data infrastructure sector as one that it planned to focus on in the coming years. At the time, CEO Sam Pollock stated that "data is the fastest-growing commodity in the world, with global usage growing exponentially, which requires massive investment in networks to store and transmit it, like fiber and telecom." Because of that, the company had already started investing in the sector by acquiring communications towers in France. However, it aimed to build out a much more robust portfolio of data infrastructure businesses so that it could benefit from the sector's growth.
It has since acquired several data infrastructure businesses, including recently agreeing to buy a portfolio of communications towers in India and Cincinnati Bell (NYSE: CBB), which operates a leading fiber-optic network in North America. These deals will not only provide an immediate boost to its cash flow but also enhance its growth prospects. As a result, Brookfield should have no problem continuing to grow its 4.1%-yielding dividend.
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