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5-Star Stocks Poised to Pop: Brookfield Infrastructure

Based on the aggregated intelligence of 170,000-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

Headquarters (Founded) Hamilton, Bermuda (2007)
Market Cap $2.75 billion
Industry Electric utilities
Trailing-12-Month Revenue $888 million
Management

CEO Samuel Pollock

CFO John Stinebaugh

Trailing-12-Month Operating Margin 30.5%
Cash/Debt $264 million / $4.8 billion
Dividend Yield 5.1%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 99% of the 792 members who have rated Brookfield Infrastructure believe the stock will outperform the S&P 500 going forward. These bulls include Laice1 and GingersBread.

Just last week, Laice1 tapped Brookfield Infrastructure as a solid income opportunity: "[G]enuine value play. ... [A] dividend of just over 5%. Has fingers in many different pies, what's not to like?"

In fact, Brookfield Infrastructure even sports a cheapish P/E of 5.9. That represents a clear discount to other highly rated infrastructure stocks like Fluor (NYSE: FLR  ) (33.4), Foster Wheeler (Nasdaq: FWLT  ) (24.2), and McDermott International (NYSE: MDR  ) (22.8).

CAPS member GingersBread elaborates on the bull case:
 

Brookfield is a well-diversified infrastructure company with smart management and good long-term growth prospects. ... There operations are well-diversified globally, from railroads in Australia to timber fields in Canada, and from ports in Europe to utilities in Chile. The company uses stable cash-generating businesses like urban utilities (literal monopolies) to fuel high-growth operations like airport and railroad construction that service emerging markets. Significant debt and leveraging will likely prove beneficial to the company long-term, but nonetheless represents a possible risk to the business.

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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Brookfield Infrastructure. Motley Fool newsletter services have recommended buying shares of Brookfield Infrastructure. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 26, 2011, at 5:22 PM, TimothyVR wrote:

    BIP allows me to invest in infrastructure and utilities in Australia, Brazil, Canada, Chile and other nations. These are among the strong and healthy economies of today and the next decades.

    The dividend yield is high, recent earnings are strong and the price is very low. The future looks bright.

    Altogether it is a very attractive pick for my portfolio.

  • Report this Comment On June 01, 2011, at 4:37 AM, Laice1 wrote:

    I agree with TimothyVRs sentiment, have been looking to play into Brazil and Chile, but with a U.S or European company with a decent exposure to that part of the world, what with the soccer world cup and the olympics coming their way. This makes a solid 5 year+ play. Even though the markets would wobble from time to time taking the stock with it, it would make for good play to buy on dips on what is a cheap stock in this market at this current price point.

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Related Tickers

5/25/2012 4:04 PM
BIP $31.30 Down -0.10 -0.32%
Brookfield Infrast… CAPS Rating: *****
MDR $10.38 Up +0.09 +0.87%
McDermott Internat… CAPS Rating: *****
FWLT $18.82 Down -0.16 -0.84%
Foster Wheeler Ltd… CAPS Rating: ****
FLR $49.70 Down -0.35 -0.70%
Fluor Corporation CAPS Rating: *****

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