Brookfield Infrastructure (BIPC) (BIP 1.55%) isn't your typical high-yielding dividend stock. The company, which yields over 4%, is also growing briskly. That was evident in the second quarter when its funds from operations (FFO) increased by 10%.

The global infrastructure operator sees more high-powered growth ahead. That should give it the fuel to continue increasing its high-yielding dividend and produce strong total returns.

A strong showing

Brookfield Infrastructure generated $608 million of FFO in the second quarter, up 10% from the prior-year period. The company benefited from solid organic growth drivers and the impact of recently completed acquisitions.

The strongest performance came from Brookfield's transport segment, where FFO zoomed 60% to $319 million. The company benefited from acquiring its global intermodal logistics operation and buying another 10% stake in its Brazilian integrated rail and logistics operation. The remaining businesses also performed well, delivering 9% organic growth driven by inflationary tariff increases across its global portfolio.

Brookfield's data segment was another notable contributor, delivering $78 million in FFO, an 8% increase. It benefited from recently completed acquisitions, including buying 40 data center sites out of bankruptcy after the prior operator mismanaged its capital structure. That growth helped offset the sale of its New Zealand integrated distribution business in June.

The company's midstream and utilities segments produced less FFO in the period than last year because of its capital recycling activities. Brookfield sold its Australian-regulated utility business and secured new financing on its U.S. gas pipeline, negatively impacting results. Capital recycling activities have brought in about $1.4 billion in cash proceeds this year, giving it the funds to deploy into higher-return opportunities.

Lots more growth ahead

Brookfield Infrastructure expects to continue simultaneously selling assets and investing in new opportunities. It's working to sell six more assets, which should help boost its total proceeds to around $2.5 billion over the coming quarters. That will enhance its liquidity so that it can capitalize on future opportunities.

Given the recent market conditions, the company's investment focus has been on tuck-in, follow-on, and organic growth opportunities across its portfolio. It has secured seven follow-on acquisitions this year, including buying those 40 data centers and boosting its stake in its Brazilian integrated rail and logistics business. It has also secured a bolt-on deal to buy a portfolio of telecom towers in India, which should close early in the fourth quarter.

Brookfield has also continued to secure organic expansion projects. Its backlog has grown by 15% over the past year to $7.7 billion. For example, it has secured almost $800 million of projects in its midstream segment, including pipeline expansions and incremental gathering and processing capacity additions. It's also investing over $1 billion to build several new data centers around the world.

Meanwhile, conditions in the acquisition market are trending positively. That drives Brookfield's view that mergers and acquisitions (M&A) activity could be active in the back half of this year. Interest rates are starting to fall while companies need capital to support investments in AI. The company noted in its earnings release that its "novel transaction with Intel from several years ago is providing the blueprint for similar large-scale opportunities, which are gaining momentum."

These catalysts drive Brookfield's view that it should be able to continue delivering double-digit FFO per share growth in the coming years. That supports its plan to increase its high-yielding dividend at a 5% to 9% annual pace.

Robust return potential

Brookfield Infrastructure continues to execute its strategic plan. Its FFO is growing at a double-digit pace, which it expects will continue. Meanwhile, it offers investors a high dividend yield that should continue rising. That combination of growth and income should give Brookfield the fuel to produce double-digit total returns in the coming years, making it a great stock to buy right now.