#7 - Brookfield Infrastructure Partners (NYSE:BIP)
Another way to invest in inflation-resistant stocks is through utility stocks. These give investors the benefit of predictable revenue and significant, reliable dividends. That’s the case with Brookfield Infrastructure Partners, L.P. (NYSE: BIP). The company exposes investors to 5G, data centers, and the natural gas sectors.
Despite a stock split in June, BIP stock is down 10% for the year. Part of that is because, despite delivering substantial revenue, the company has a habit of missing analysts’ earnings expectations.
That may be about to change. The company is expected to grow earnings at an average rate of 8% over the next five years. And that’s in addition to the company’s dividend, which has a yield of 4.24%.
About Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services.
Read More - Current Price
- $34.75
- Consensus Rating
- Buy
- Ratings Breakdown
- 5 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $40.20 (15.7% Upside)
When the economy is going well, many companies can get away with lackluster earnings or even being unprofitable. But when inflation is raging, earnings growth is essential to stock price growth. And when inflation is high, it's also good to find dividend stocks. That's because the dividends you receive can be added to the stock price growth to give you a total return that can help you keep up with inflation.
Periods of high inflation are not times to grip it and rip it. Rather, they are times when you want to shorten your swing and keep it in the fairway. These are times when any gain is a good gain.
Finding inflation-resistant stocks means buying stocks of companies that make goods that people want and will continue to pay for, even as the companies are able to pass along some of their rising costs. In the short-term, that will put a floor under the stock. And it's from that base that these stocks can rise to higher levels when the market turns around.
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