We're hitting the end of 2011, and it's a great time to look back on the performance of Brookfield Infrastructure Properties
A few Foolish facts about Brookfield Infrastructure
|Year-to-Date Stock Return||34.0%|
|1-Year Revenue Growth||107.0%|
|CAPS Rating (out of 5)||*****|
Sources: S&P Capital IQ and Motley Fool CAPS.
For a stock that investors should love for its yield, Brookfield Infrastructure turned in some mighty good capital appreciation in 2011. That's part of the appeal of investing in a company that operates something like an infrastructure fund, picking up attractive assets at good prices -- one of the reasons it made our list of 11 incredible dividend stocks earlier this year.
If you love the hefty dividends from utilities such as Duke Energy
And this year, like last, Brookfield Infrastructure added to its trove of assets. The company offered about $417 million in new shares in order to snap up two Chilean toll roads and fund the growth capital expenditures on its Australian railroad. Given its track record of strong capital allocation and its backing from Brookfield Asset, I'm happy to see the company make acquisitions.
Even better, with this diversification and smart capital allocation, you get a company that yields more than most utilities:
Source: S&P Capital IQ.
But like those utilities, Brookfield Infrastructure has a high level of cash flows represented by regulatory or contractual frameworks -- 80% as of the latest quarter -- providing the company with high-quality revenue. And that stability means the company should continue to perform well in 2012, despite an uncertain economic climate.
With its goal to increase its payout by 3%-7% annually, and a total return goal of 12%-15% annually, Brookfield Infrastructure looks like a great place to be for the long term, even if there are bumps along the way.
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Jim Royal, Ph.D., owns shares of Brookfield Infrastructure, Brookfield Asset, Duke, Exelon, Southern, and National Grid. The Motley Fool owns shares of Brookfield Infrastructure. Motley Fool newsletter services have recommended buying shares of Brookfield Infrastructure, National Grid, Brookfield Asset, Southern, and Exelon. Motley Fool newsletter services have also recommended creating a write covered strangle position in Exelon. 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 Motley Fool has a disclosure policy.