Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, infrastructure asset operator Brookfield Infrastructure Partners (NYSE: BIP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Brookfield Infrastructure's business and see what CAPS investors are saying about the stock right now.
Brookfield Infrastructure facts
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Headquarters (Founded)
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Hamilton, Bermuda (2007)
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Market Cap
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$2.75 billion
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Industry
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Electric utilities
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Trailing-12-Month Revenue
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$1.17 billion
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Management
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CEO Samuel Pollock
CFO John Stinebaugh
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Return on Equity (Average, Past 3 Years)
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7.2%
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Cash/Debt
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$258 million / $4.99 billion
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Dividend Yield
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5.8%
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 932 members who have rated Brookfield Infrastructure believe the stock will outperform the S&P 500 going forward. These bulls include MatthewCHoffman and All-Star PsychoDr, who is ranked in the top 5% of our community.
Just last month , MatthewCHoffman offered three solid reasons to look into the stock:
1. it has obtained many important infrastructure assets that are crucial to commerce and essential utility services, 2. It pays a good dividend, and 3. It consequently is a utility-type stock with a low beta. Given that I believe we are headed into a global recession and second financial crisis, I think this stock will perform well in the short run against the S&P 500.
Brookfield Infrastructure even sports a cheapish P/E of 6.4. That represents a clear discount to other highly rated infrastructure stocks like Fluor (NYSE: FLR ) (22.6), Foster Wheeler (Nasdaq: FWLT ) (12.9), and McDermott International (NYSE: MDR ) (12.6).
CAPS All-Star PsychoDr elaborates on the bull case:
This company is a huge infrastructure international dividend play. ... I actually think the absence of volatility in this stock during those tumultuous times in the recent past are an indication of the power of their tangible assets and ability to buy new businesses and expand their portfolio in the future. When I talk about tangible assets I am talking about power distribution lines, railroads, and sea ports. This is not a small business. The dividend is a nice place to start and their ability to acquire additional assets at reduced prices is a catalyst for share appreciation, though I would not mind gaining more shares through dividend reinvestment.
What do you think about Brookfield Infrastructure, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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