BIPC - This Dividend Stock's Brilliant Strategy Continues to Supercharge Its Growth
Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) has created tremendous value for its shareholders over the years. The global infrastructure operator has delivered a 16.3% annualized total return since its formation in 2008. That has significantly outpaced the S&P 500's 9.8% total return during that timeframe.
Powering those returns is the company's investment strategy. It buys high-quality infrastructure assets on a value basis, enhances the operations through a hands-on management approach, and then sells the assets as they reach a more mature growth phase. Brookfield then repeats that process by recycling the capital into new opportunities. This strategy has helped fuel the mid-teens compound annual growth rate in its funds from operations ( FFO ) per share over the years while enabling it to increase its dividend each year.
The impact of Brookfield Infrastructure's capital recycling strategy was on full display last year. In 2021, the company raised $2 billion from the sale of mature assets, enabling it to enter 2022 with over $5 billion of liquidity to fund new investments, including $3.7 billion at the corporate level. That gave Brookfield the financial flexibility to close $2.9 billion of new investments across five transactions last year. The company closed the acquisition of two Australian utility businesses early in the year. It capped the year off by completing deals for HomeServe and an interest in a large German telecom tower partnership DFMG. Brookfield also helped privatize an Australian data infrastructure company last year.
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This Dividend Stock's Brilliant Strategy Continues to Supercharge Its Growth