Infrastructure is essential to transport and store energy, water, freight, passengers, and data. It's the physical backbone of the global economy, so a well-maintained infrastructure is vital to the health and continued growth of the economy.
Infrastructure is costly to build and maintain. The U.S. alone needs to invest an estimated $3.5 trillion by 2033 to bring its surface transportation infrastructure up to date, according to the American Society of Engineers. On top of that, the country needs to invest money in water transportation ($45 billion), energy ($1.9 trillion), aviation ($310 billion), and drinking water, wastewater, and stormwater ($1.7 trillion) infrastructure.
Globally, the need for infrastructure investment is even greater. Swiss Re estimates that the investment required through 2040 to rebuild and expand the world's infrastructure is more than $80 trillion.
Governments can't afford that expense by themselves, which is leading them to increasingly collaborate with companies in the private sector. An infrastructure company may own, operate, build, maintain, or expand infrastructure systems. The different types include:
- Transportation infrastructure: The physical assets that move people and freight from one place to another, including airports, railroads, toll roads, and ports.
- Commodity infrastructure: The physical assets that produce, transport, process, and store commodities such as water, oil, natural gas, refined petroleum products, and electricity.
- Data infrastructure: Physical networks and components that enable the movement and storage of information, such as communications towers and data centers.
Five top infrastructure stocks for 2025
Five top infrastructure stocks for 2025
Below are five top infrastructure companies that have long histories of creating shareholder value and are well positioned to benefit from the growth in infrastructure spending in the coming years.
1. Brookfield Infrastructure
Brookfield Infrastructure (BIP -0.56%) (BIPC 0.08%) is a major beneficiary of the trend in government entities increasingly transferring ownership of infrastructure assets to the private sector to fund new investment. It’s a leader in owning, operating, and acquiring transportation, midstream energy, utility, and data infrastructure. Brookfield holds a diversified, global portfolio of infrastructure companies.
Its strategy has paid off. Brookfield Infrastructure has a long history of increasing its dividend payments and outperforming the S&P 500 (SNPINDEX:^GSPC). The company expects to boost its dividend by 5% to 9% annually over the long term, fueled by more than 10% annual funds from operations (FFO) per share growth. That makes it likely to continue paying a higher-than-average dividend yield.
2. Enbridge
Enbridge (ENB -0.12%) is one of the leading energy infrastructure companies in North America. It operates oil and gas pipelines, other midstream assets, and natural gas utilities. The company also has a sizable renewable energy business.
Enbridge has increased its dividend for 30 consecutive years. Despite the shift toward cleaner alternative energy sources, it’s still growing and estimates it can increase its annual cash flow per share at a 3% compound annual rate through 2026 and by 5% thereafter. Because of that, the company is well positioned to continue increasing its high-yielding dividend.
3. American Tower
American Tower (AMT -1.66%) is one of the largest infrastructure-focused real estate investment trusts (REITs). The company enables mobile data and voice transmissions by operating large communications towers around the world. This infrastructure is crucial for enabling 5G networks to expand. American Tower also has a highly interconnected U.S. data center platform.
American Tower sees a long investment opportunity ahead, supporting the continued growth of communications and data infrastructure. The infrastructure REIT expects the growth to steadily increase its cash flow and its dividend.
4. Caterpillar
Caterpillar (CAT -0.17%) is a leading global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company's products make it a prime beneficiary of increasing global infrastructure spending.
The industrial company has a long history of creating value for shareholders. Caterpillar has increased its dividend for more than 30 years. This trend should continue, given the growing need for equipment to build and maintain global infrastructure.
5. Fluor
Fluor (FLR -5.08%) is a leading global provider of engineering, procurement, and construction services. It focuses on three markets:
- Energy solutions: Fluor serves customers in the chemicals, liquified natural gas (LNG), nuclear project services, and production and fuels sectors.
- Urban solutions: Flour provides services to the advanced technology, infrastructure, life sciences, mining and metals, and government sectors.
- Mission solutions: The company also provides technical and project expertise to government agencies.
Flour’s wide range of capabilities makes it a key beneficiary of increased global infrastructure spending. As a leader in engineering and construction, it will play a key role in building infrastructure projects in the coming years.
Top infrastructure ETFs for 2025
Top infrastructure ETFs for 2025
For investors who prefer not to choose individual stocks, buying shares in exchange-traded funds (ETFs) enables you to make diversified, directional bets on stock market sectors and investing themes. Investors have several infrastructure-focused ETF options.
The three infrastructure ETFs listed below concentrate on different aspects of the infrastructure industry. This variety, combined with their large asset bases -- these funds are the top three infrastructure ETFs by assets under management -- makes any of these ETFs a great option for gaining portfolio exposure to the infrastructure investing megatrend.
1. iShares Global Infrastructure ETF
The iShares Global Infrastructure ETF (IGF -0.13%) holds stocks in roughly 75 infrastructure companies that are primarily focused on serving developed countries. This infrastructure ETF offers targeted global access to companies that provide transportation, communication, water, and electricity services.
2. Global X US Infrastructure Development ETF
The Global X US Infrastructure Development ETF (PAVE 0.4%) holds stocks in about 100 infrastructure companies, all of which are poised to benefit from an increase in U.S. infrastructure investment spending. The fund holds the stocks of raw materials producers, heavy equipment makers, and engineering and construction companies.
3. FlexShares STOXX Global Broad Infrastructure Index Fund
The FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA 0.08%) is an ETF that holds more than 200 infrastructure stocks. The fund provides global exposure to the energy, utilities, communications, and transportation sectors.
Sector-specific infrastructure stocks
Sector-specific infrastructure stocks
Here are some specific types of infrastructure stocks and the companies providing the best exposure to these parts of the infrastructure industry.
Electrical infrastructure stocks
Dozens of electric utility companies focus on generating electricity and distributing it to customers. They also collectively maintain the infrastructure comprising the nation's electrical grid to ensure its reliability. One of the leading U.S. electric utilities is NextEra Energy (NEE -0.23%).
Natural gas infrastructure stocks
Many infrastructure companies operate natural gas infrastructure, which includes pipelines, processing plants, storage facilities, and LNG export terminals. Among the leaders are Enbridge and Kinder Morgan (KMI 0.45%).
Road infrastructure stocks
Road infrastructure companies operate toll roads under concession agreements with governments. They collect tolls to maintain the roadways and expand the roads as traffic volumes increase. Brookfield Infrastructure is a leader in this sector.
Technology infrastructure stocks
Technology infrastructure includes communications towers, fiber-optic cables, and data centers. Some of the leading technology infrastructure companies are Crown Castle (CCI -1.61%) and American Tower, both of which are infrastructure REITs.
Water infrastructure stocks
Pipelines, distribution systems, desalination plants, and wastewater and sewage treatment facilities are all considered water infrastructure. One of the top water stocks is American Water Works (AWK 0.62%).
Green infrastructure stocks
A growing number of infrastructure companies are developing, owning, and operating emissions-free energy sources such as wind, solar energy, hydrogen, hydropower, and biofuels. Among the sector's leaders are NextEra Energy, Brookfield Renewable (BEP -2.2%)(BEPC -1.17%), and Clearway Energy (CWEN -0.72%).
Related investing topics
How to invest
How to invest in infrastructure stocks
It's easy to add infrastructure stocks to your portfolio. Here's a step-by-step guide on how to buy infrastructure stocks:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Is investing in infrastructure right for you?
Is investing in infrastructure right for you?
The global economy requires trillions of dollars of spending in the coming decades to rebuild aging infrastructure and construct new assets to meet the needs of steadily rising populations. With such immense needs and so many ways to invest, adding infrastructure stocks or ETFs to your investment portfolio is a straightforward way to profit from this megatrend.
FAQ
FAQs on investing in infrastructure stocks
Who is the market leader in infrastructure?
Union Pacific (NYSE: UNP) is the largest infrastructure company by market capitalization (more than $140 billion in mid-2025). Meanwhile, Brookfield Asset Management (NYSE: BAM) was a leader in infrastructure investment, raising almost $110 billion in capital to invest in the sector.
Is it worth investing in infrastructure?
It can be worth investing in infrastructure. The need for infrastructure is tremendous, while there's a major funding gap between the need and the available capital. Because of that, infrastructure investments can generate high returns as companies invest in projects, which grow their revenue and cash flows. Infrastructure investments also tend to generate income (dividend payments), providing investors with a base return in addition to the potential growth in the value of their investment.
What is the return on infrastructure investments?
Net returns for core infrastructure investments (roads and power grids) tend to be in the range of 7% to 10%. Higher-risk infrastructure investments tend to yield higher returns (10% or more).
