Brookfield Infrastructure (BIP UN TSX): The Perfect Stock for This Environment

You can expect a few stocks to outperform in the current complex investing climate, and Brookfield Infrastructure Partners (BIP UN TSX)(NYSE:BIP) is one of them.

Many firms still feel the pandemic’s consequences, and now problems with the supply chain, inflation, and a probable recession all affect companies across various industries.

Naturally, defensive companies have had some of the best-performing stocks this year. But although Brookfield Infrastructure is undoubtedly a good selection because of the protective nature of its assets, here are some reasons why it’s the ideal stock to buy right now.

Brookfield Infrastructure stock has an attractive mix of assets in its portfolio

Due to its high-quality and defensive assets, which enable the firm to regularly produce tons of revenue and cash flow regardless of the state of the economy, Brookfield Infrastructure stock is one of the finest stocks to buy right now.

The assets of Brookfield are split up into its four key divisions. There are about 16,000 km of natural gas pipelines, over 60,000 km of electrical transmission lines, over 30,000 km of railway lines and around 4,000 km of toll roads owned by the company’s two largest sectors, utilities and transport.

More than 22,000 km of transport pipelines and 17 facilities for the processing of natural gas are also owned by the stock’s midstream section.

Finally, its data segment owns high-value assets like 162,000 telecom towers and rooftop sites, 50 data centres, and 22,000 kilometres of fibre optic cable.

These highly defensive assets have significant entry barriers, providing Brookfield Infrastructure stock with a competitive edge and making it one of the best stocks you can purchase in the current climate.

Brookfield operates like a growth stock

Because Brookfield has such strong defensive assets, it is quite trustworthy. These infrastructure resources are essential to the global economy regardless of the state of the economy.

But Brookfield is much more than just a defensive stock. It’s a growth stock that’s always considering how to boost value for investors quickly.

The stock constantly seeks to diversify its portfolio and purchase new assets that it believes are undervalued or can grow organically using its knowledge.

However, it also frequently sells its assets when it thinks it can get a reasonable price. It then reinvests that money in those more recent, undervalued assets to steadily raise the fund’s value and the amount of cash flow its portfolio can produce.

The annual distribution for Brookfield Infrastructure stock (BIP UN TSX) continuously aims to increase by 5% to 9%. The company still offers a dividend of about 3.4% despite Brookfield’s strong performance this year.

The stock has a tonne of tailwinds from inflation

Brookfield Infrastructure Stock

Lastly, Brookfield (BIP UN TSX) is one of the best stocks you can purchase right now since it is one of the few businesses that can genuinely profit from rising inflation.

Brookfield is in a very different situation than other businesses, which are generally experiencing expense increases, decreased revenue, or both.

Most of the stock’s expenses are defined, and a tonne of its income is adjusted for inflation. Consequently, it should be expected that if prices rise, Brookfield’s profit margins will increase.

Already in the first and second quarters of 2022, Brookfield’s revenue rose by 27% and 38% year over year, respectively.

Therefore, Brookfield Infrastructure stock (BIP UN TSX) is among the greatest choices to consider now if you’re seeking a high-quality stock that you can buy today and rely on for years.