When you're in your prime, nothing can stand in your way.
Now that Brookfield Infrastructure Partners
Nearly two years ago, I made a wish. Given my forecast for deep and sustained weakness in housing and construction, I wanted to see Brookfield Infrastructure Partners (let's call it "BIP") diversify away from its timberland-heavy asset portfolio with a move into transportation and utility plays. I sought to steer Fools clear of heavily exposed timberland operators like Weyerhaeuser
Unlike the Los Angeles school district that managed to spend nearly $1.2 billion building only three public schools, let's take a look at what BIP will be getting for its $1.4 billion investment. BIP will become the proud owner of the Dalrymple Bay Coal Terminal in Queensland, Australia. As Peabody Energy
Although I consider the coal terminal the star of BIP's acquired portfolio, we have quite a supporting cast to recognize. Prime holds a 26.4% stake in Kinder Morgan Energy Partners'
Brookfield Asset Management
BIP boasts that this latest deal will be immediately accretive with a 27% boost to funds from operations. The company also pledged a 13% dividend hike for 2011 to $1.24 per unit, and stated its intention to increase payouts by 3% to 7% per year over the long term. Given the highly predictable nature of cash flow from most of BIP's core assets, I believe Fools can expect the company to make good on those intentions.
For Fools seeking resilient plays to ride out this extended period of economic uncertainty, I consider BIP a superior combination of deep value and reliable income. I have reinitiated my bullish stance on BIP within my Motley Fool CAPS portfolio, and I invite you to join in the fun and cast your vote today.