Brookfield Infrastructure Partners (BIP -0.80%) has taken a beating this year. The global infrastructure giant has tumbled 26% from its 52-week high, with a big portion of that decline coming in recent weeks.

That sell-off is a big headscratcher, considering the company's growth prospects. It makes Brookfield Infrastructure look like a screaming buy right now.

An incredible value proposition

Despite the valuation decline, Brookfield Infrastructure is having a fantastic year. The company is on track to grow the annual run-rate of its funds from operations (FFO) by about 13% this year, pushing it to $3.05 per share by the fourth quarter. With units of the partnership recently trading at less than $28 apiece, Brookfield sells for 9.2 times FFO. Meanwhile, the economically equivalent corporate shares of Brookfield Infrastructure Corporation (BIPC -1.04%) are almost as cheap. With a $33 share price, it trades at 10.9 times FFO. They're ridiculously cheap, considering that the S&P 500 currently fetches more than 19 times earnings.

The low valuation is why Brookfield offers such a high dividend yield. The Brookfield entities pay the same dividend rate. That gives the partnership a 5.5% yield at its price, while the corporate shares currently yield 4.6%. That's a lot higher than the S&P 500's 1.6% dividend yield. 

Brookfield's payout is on a very firm foundation. It generates stable and growing FFO and has a conservative payout ratio of 68% of its 2023 FFO (and around 50% of its fourth-quarter run rate). That enables the company to retain lots of cash to fund new investments and maintain its strong investment-grade balance sheet.

A robust growth profile

Brookfield Infrastructure trades as if it's not growing, which isn't the case. The company's FFO per share was up 10% through the first half of this year and is on pace to grow 13% by year-end. Several factors are fueling its growth, including inflation-linked contractual rate increases, volume growth, capital projects placed into service (led by its Heartland Petrochemical Complex), and acquisitions.

The company has the momentum to continue growing at a double-digit pace through at least next year. It continues to benefit from elevated global inflation rates, which allow it to push through rate increases. Meanwhile, capital projects should continue to provide a boost. Heartland is still ramping up to full capacity, giving it momentum heading into next year. Another large-scale capital project partially funded by Brookfield is on track to start-up next year when Intel should finish its semiconductor manufacturing complexes in Arizona. Intel recently accelerated the build-out of those two plants after a customer pre-paid for capacity to help push the process along. 

Finally, Brookfield has continued to be very active in the M&A market. It recently completed its acquisition of Triton International, which will boost its transportation business. Meanwhile, Brookfield agreed to buy two more data center platforms this year. These new investments will help drive incremental earnings growth in 2024 and beyond. The company also has lots of financial flexibility to make additional acquisitions. 

These drivers power Brookfield's outlook that it could deliver 12%+ FFO per share growth over the next one to three years. That easily supports the company's plan to increase its dividend by 5% to 9% annually. Brookfield has an incredible track record of increasing its payout. It has given its investors a raise every year throughout its 14-year history, growing the payout at an 8% compound annual rate over the past decade.

High growth and income from a low price

Brookfield Infrastructure trades at a dirt cheap price these days, especially given its growth prospects. That also enables investors to lock in a high-yielding payout that should grow steadily in the coming years. These features make it look like a screaming buy right now.