Brookfield Infrastructure (BIPC -0.99%) (BIP 0.03%) is an incredible company. The global infrastructure operator has delivered a 16.5% annualized total return since its inception in 2008. That has pulverized the 9.4% total return of the S&P 500 during that time frame. 

Fueling those returns has been the company's ability to grow its cash flow and dividend at attractive rates. Brookfield recently increased its payout by another 6%, marking its 14th straight year of dividend growth.

The company has a lot more growth ahead. This makes the 17% decline in its share price from the recent peak look like a screaming buy for long-term investors these days. 

Another year of healthy growth ahead

Brookfield Infrastructure grew its funds from operations (FFO) by 20% overall last year and by 12% on a per-share basis, to $2.1 billion, or $2.71 per share. Organic growth drivers fueled about half of the increase, while acquisitions supplied the other half.   

The company expects to continue growing in 2023. CEO Sam Pollock stated on the fourth-quarter call, "With the recent closings of HomeServe and DFMG, which are part of that $2.9 billion (in acquisitions it completed last year) and the ramp-up of the Heartland facility over the next several quarters and elevated inflation levels, visibility into our cash flow growth has rarely been stronger." 

The company expects these drivers to grow its FFO per share by 12% to 15% this year. This forecast implies the company will generate between $3.04 and $3.12 of FFO per share in 2023.

With shares recently trading around $44 per share, Brookfield sells for about 14.5 times its FFO. That's cheap for a company that's growing at a double-digit rate. It gives the company a 7% free cash flow yield, which is relatively inexpensive compared to the S&P 500 (5% free cash flow yield) and Nasdaq Composite (4%) 

Refilling its growth engine

Brookfield believes it can continue growing at a healthy rate in the future. Pollock said on the call:

This growth should be sustainable over the longer term, given our large capital backlog of organic projects and our proven ability to grow the business through accretive new investments. Favorable sector trends, which have been the catalyst for our recent acquisition activity, continue to support our investment pipeline. In addition to evaluating several corporate carve-outs, a large component of our deal pipeline is comprised of public-to-private opportunities. As we stated in the past, the infrastructure super cycle is creating long-term investment opportunities that will require trillions of dollars.

Last year, the company refilled its capital project backlog by agreeing to help fund 49% of the cost for two new semiconductor factories that Intel (INTC -5.42%) is building in Arizona. Intel expects the $30 billion project to be fully operational next year. Brookfield will share the revenue with Intel, giving the company visibility into its future expansion-related organic growth. 

In addition to organic growth, Brookfield also sees many opportunities to make accretive acquisitions. The company has already refilled its deal pipeline. Pollock noted on the call that it's pursuing various transactions, including buying infrastructure assets from corporations and acquiring entire companies. While he didn't discuss specifics, he said:

As far as sectors and geographies, they're fairly well balanced between North America and Europe, I'd say. That's where the largest percentage lie. And sector-wise, I think we have opportunities across all the sectors that we pursue. So it isn't really concentrated per se in one sector.

The company has ample financial flexibility to pursue deals. Brookfield ended the year with a strong balance sheet and $3.4 billion of liquidity. It expects to enhance its liquidity in the near term. It's selling its Indian toll road portfolio and its 50% owned freehold landlord port in Australia.

Brookfield expects those deals to close in the first half and raise $260 million. Meanwhile, it recently launched another round of asset sales that could generate more than $2 billion of proceeds this year. That will give it even more financial flexibility to make accretive transactions. 

A magnificent dividend growth stock at a fantastic price

Brookfield Infrastructure is growing briskly these days. However, shares have been under pressure due to macroeconomic uncertainty. This gives investors the opportunity to buy this top-notch dividend growth stock at a great price.

With lots of growth lined up and more opportunities in the pipeline, the company has plenty of fuel to continue growing its FFO and dividend at attractive rates. That should enable it to continue producing compelling total returns.