Recent Buy – Brookfield Asset Management

A new purchase in Baby R2R‘s portfolio this time. Regular readers may be aware that I started a two-part portfolio for Baby R2R earlier this year. The first part is related to her education fund that is invested in index funds and I make regular monthly contributions to that fund and dollar-cost average over time. The second part of the portfolio is what I call her Nest Egg Fund.

The Nest Egg Fund

The idea behind the Nest Egg Fund is simple and straightforward. Contribute $100/month and let the investment compound over the next few decades. Instead of going with a taxable account in her name, I have earmarked a portion of my tax free investment account, so that I can avoid paying dividend and capital gain taxes.

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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.

Recent Buy – Brookfield Infrastructure Partners LP

BIP

The market jitters continue as the world turns its eyes to the US Fed – will they or wont they raise the interest rates? There are a plethora of dangerous financial situations facing the world which could possibly send the stock and bond markets into a turmoil. I continue to purchase looking for good opportunities trying to tune out the noise as a majority of these occurrences are out of control. Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to keep investing at regular intervals and build my passive income over the course of time. In staying true to tradition, here’s another purchase in my portfolio, this time adding a new company to my portfolio.

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