BIP - Down 25% This Magnificent Dividend Stock Is a Screaming Buy
2024-02-04 08:49:00 ET
Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) has lost 25% of its value over the past year. That's a head-scratching performance for a company that's operating extremely well. The company grew its funds from operations (FFO) by 10% last year (and 9% on a per-share basis). That gave it the fuel to increase its dividend by another 6%. That, in turn, extended its magnificent dividend growth streak to 15 straight years.
With its earnings rising and its share price falling, Brookfield now trades at a much cheaper price (and higher dividend yield of 4.3%). That makes it look like a screaming buy, especially considering that it expects 2024 to be an even stronger year.
Brookfield Infrastructure generated $2.3 billion, or $2.95 per share, of FFO last year. With shares recently trading at around $36 apiece, Brookfield Infrastructure sells for around 12 times its earnings. That's dirt cheap compared to the broader market. The S&P 500 index currently trades 22 times earnings, while the Nasdaq 100 trades at more than 30 times earnings.
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Down 25%, This Magnificent Dividend Stock Is a Screaming Buy