Infrastructure supports the movement of energy, water, goods, people, and data, making it the physical backbone of the global economy. As populations grow and systems age, the need for investment continues to rise.
In the U.S. alone, more than $3.5 trillion is needed by 2033 to modernize surface transportation, according to the American Society of Civil Engineers. Additional investment is required across energy, aviation, and water systems. Globally, infrastructure needs exceed $80 trillion through 2040, according to Swiss Re.
Because governments often lack the resources to fund these projects alone, private companies are playing a growing role, creating long-term opportunities for investors.
Types of infrastructure companies
Infrastructure companies generally fall into three broad categories:
- Transportation infrastructure: Airports, railroads, toll roads, and ports that move people and freight.
- Commodity infrastructure: Assets that produce, transport, and store energy and water, including pipelines and utilities.
- Data infrastructure: Communications towers, fiber networks, and data centers that support global connectivity.
Five top infrastructure stocks to consider
Below are five top infrastructure companies with long histories of creating shareholder value and well-positioned to benefit from growth in infrastructure spending in the coming years.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Brookfield Infrastructure (NYSE:BIPC) | $6.2 billion | 3.71% | Gas Utilities |
| Enbridge (NYSE:ENB) | $117.2 billion | 5.10% | Oil, Gas and Consumable Fuels |
| American Tower (NYSE:AMT) | $86.7 billion | 3.65% | Specialized REITs |
| Caterpillar (NYSE:CAT) | $333.5 billion | 0.83% | Machinery |
| Fluor (NYSE:FLR) | $6.6 billion | 0.00% | Construction and Engineering |
1. Brookfield Infrastructure
NYSE: BIP
Key Data Points
Brookfield Infrastructure (BIP +2.67%) (BIPC +1.77%) 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 data infrastructure investments put Brookfield in a strong position to capitalize on the $7 trillion AI infrastructure investment megatrend.
Its strategy has paid off. Brookfield Infrastructure has a long history of increasing its dividend payments and outperforming the S&P 500 (^GSPC -0.32%). 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
NYSE: ENB
Key Data Points
Enbridge (ENB -0.20%) 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 31 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, leaving Enbridge well-positioned to continue increasing its high-yielding dividend.
3. American Tower
NYSE: AMT
Key Data Points
American Tower (AMT -1.67%) is one of the largest infrastructure-focused real estate investment trusts (REITs). The company enables mobile data and voice transmission by operating large communications towers worldwide. 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
NYSE: CAT
Key Data Points
Caterpillar (CAT -1.30%) 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
NYSE: FLR
Key Data Points
Fluor (FLR -1.02%) 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: Fluor 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.
Fluor’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. Fluor had $28.2 billion of projects in its backlog in early 2026.
Benefits and Risks of Investing in Infrastructure Stocks
Some of the benefits of investing in infrastructure stocks include:
- They allow you to capitalize on the massive need for infrastructure investment.
- They provide the potential to earn dividend income.
- They offer a lower-risk way to invest in a major theme (e.g., infrastructure stocks to capitalize on AI growth).
However, investing in infrastructure isn't without risk. Some risks include:
- Infrastructure is capital-intensive, requiring infrastructure companies to have strong financial profiles to fund maintenance and expansion projects.
- Some infrastructure projects require government support, which can change with a new administration.
What to look for when investing in infrastructure stocks
Investors should evaluate several factors when considering investing in infrastructure stocks, including:
- Business model: Some companies own and operate infrastructure, while others build infrastructure for clients. Infrastructure operators tend to generate steadier revenue compared to developers.
- Infrastructure focus: Some infrastructure companies focus on a specific type of infrastructure (e.g., energy pipelines or telecom towers) while others have more diversified operations.
- Financial profiles: Given the costs of building and maintaining infrastructure, these companies need strong financial profiles to fund growth and withstand potential setbacks.
How to invest in infrastructure stocks
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.
Key Trends in the Infrastructure Industry
Some of the major trends shaping the infrastructure sector are:
- Governments need to invest heavily in maintaining and building infrastructure, such as roads, bridges, and railways.
- Companies need to invest a staggering $7 trillion in AI infrastructure by 2030, including data centers, power generation, and transmission.
- The world needs to invest trillions of dollars to transition to lower-carbon energy by 2050.
Is investing in infrastructure right for you?
The global economy will require trillions of dollars in spending over the coming decades to rebuild aging infrastructure and build 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.
Related investing topics
FAQ
FAQ on investing in infrastructure stocks
About the Author
Matt DiLallo has positions in American Tower, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Clearway Energy, Crown Castle, Enbridge, Kinder Morgan, and NextEra Energy. The Motley Fool has positions in and recommends American Tower, Caterpillar, Crown Castle, Enbridge, Kinder Morgan, and NextEra Energy. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
