Brookfield Infrastructure Dividend Increase

BIP

Brookfield Infrastructure Partners L.P. (BIP.UN.TO/BIP) announced a 7.55% increase in its cash dividend. The quarterly cash dividend will increase from $0.53 to $0.57 per share and payable on Mar 31, 2016 to shareholders on record as of Feb 29, 2016.

Even though I own the Canadian listed stock (BIP.UN.TO), the dividends are issued in US$, as all financials with Brookfield Infrastructure are in US$-terms. All currency terms used here refer to US$.

Brookfield Infrastructure Partners is a Dividend Challenger and this is the 9th consecutive annual dividend increase. The annual dividend rate goes up from $2.12 to $2.28. Yield going forward based on today’s closing price is 6.58%.

From the press release statement:

“After a good year in 2015, our business is well positioned to prosper in 2016. Our operations are performing well, our balance sheet is strong and we have almost $3 billion of liquidity,” said Sam Pollock, CEO of Brookfield Infrastructure. “With our unique internally generated organic growth and ability to recycle capital, we will continue to generate steady, predictable growth. We are also enthusiastic about the potential for value based transactions in Brazil and North American energy infrastructure in the years ahead that would be highly profitable for the business.”

Our portfolio consists of 35 shares of Brookfield Infrastructure Partners LP, which increases our annual dividend from $74.20 to $79.80, an increase of $5.60.

8 thoughts on “Brookfield Infrastructure Dividend Increase

  1. Helen says:

    I’m wondering how you handle the fact that you receive dividends in US funds. Do you wait till you accumulate about $1,000, then convert it to Canadian dollars? Or, do you use accumulated US dollars to only reinvest in other US stocks? This dilemma is the reason why I have hesitated to buy this stock.

    • Hi Helen,
      My position in BIP.UN.TO is pretty small and for now I am letting the broker convert it to CAD$ for each payment – which means I am losing some money in conversion fees. Come to think of it, I should fix this. My broker (Questrade) allows me to hold funds in US$ and CAD$ in the same account – so its convenient and I can just ask them to deposit it in US$ instead. I can then use the accumulated US$ funds to buy stocks later.

      Btw, if you want to reinvest (DRIP), then the funds have to converted by the broker. For e.g., I own AQN.TO which also pays dividends in US$, and I can DRIP it since my position covers atleast 1 share based on the paid amount – but the broker has to convert the funds to CAD$ each time in order to execute this. There’s no way around it.

      Hope that helps
      R2R

  2. JC says:

    You’re really racking up dividend raises this week.

    COP cut theirs by 66% to 0.25 this morning. I’m glad I closed my position in December. Cash flow just looked horrible and the dividend unsustainable.

    • Yup, its the best time of the year for DGIs 🙂 And I just got another raise this morning (in BCE).
      I saw COP slash its dividend – good call on closing position in December. Its turning sour in the energy market with teh big players slashing dividends now.

      R2R

  3. Yay $5 is sweet and it will only get higher under that solid investment. I missed the timing on that one but keeping my eyes open for good timing to initiate at some point. Thanks for sharing!

    BeSmartRich

    • I think the valuation is great right now. I wish I had more cash in that account. I initiated when it was close to $55 I think…and the stock has fallen down to the mid to high 40s. There is no revenue growth expected this year, but next year theres a huge jump. Investing in an infrastructure LP like BIP is a no-brainer imo.

      Best
      R2R

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