Investing in basically sturdy dividend shares lets you profit from a gradual passive-income stream and long-term capital positive aspects. One prime TSX dividend inventory is Brookfield Infrastructure Companions (TSX:BIP.UN), which is down 32% from all-time highs.
Valued at a market capitalization of just about $20 billion, Brookfield Infrastructure operates important infrastructure property throughout 4 segments, together with utilities, transport, midstream, and information centres. BIP manages essential infrastructure supporting vitality, transportation, and communications throughout a number of international locations globally.
Regardless of the continued pullback in BIP inventory, it has returned 260% to shareholders since its preliminary public providing in 2008. If we modify for dividend reinvestments, cumulative returns are nearer to 772%.
Let’s see if this TSX inventory continues to be purchase in September 2025.
How did the TSX dividend inventory carry out in Q2?
Regardless of a difficult macro surroundings, Brookfield Infrastructure delivered strong second-quarter (Q2) outcomes. The Canadian heavyweight accelerated its capital deployment and recycling technique, positioning it to capitalize on rising infrastructure alternatives pushed by synthetic intelligence (AI) and vitality transitions.
BIP reported funds from operations (or FFO) of US$638 million in Q2, a rise of 5% 12 months over 12 months. If we modify for overseas alternate fluctuations, FFO progress could be greater at 9%. This efficiency was pushed by sturdy natural progress throughout a number of segments, in addition to contributions from current acquisitions.
BIP achieved a report in capital-recycling exercise in 2025, securing US$2.4 billion in sale proceeds by means of strategic partial divestitures. Notable transactions included the sale of a 23% stake in its Australian coal export terminal. BIP generated US$280 million from this stake sale whereas sustaining important possession, and finishing further sell-downs in information centre and intermodal logistics property. These strikes exhibit a capability to crystallize worth whereas retaining publicity to high-quality infrastructure property.
BIP additionally deployed US$1.3 billion throughout three main acquisitions, highlighted by the current closing of the US$9 billion acquisition of Colonial Pipeline. The refined merchandise pipeline system spans 5,500 miles and gives 2.5 million barrels per day of capability, providing BIP a mid-teen money yield with engaging fundamentals. Extra investments embody Hotwire’s fibre-to-the-home platform and a significant railcar leasing portfolio.
The corporate’s Canadian midstream operations are experiencing sturdy momentum. BIP lately highlighted improved utilization charges, longer contract durations, and natural progress alternatives on this phase. The midstream enterprise advantages from elevated AI-driven energy demand and enhanced vitality export infrastructure, together with the upcoming commissioning of latest LNG services.
BIP’s information phase skilled stellar progress, with a forty five% enhance in FFO, reflecting the continued digitalization megatrend. It’s well-positioned to seize alternatives from the deployment of AI infrastructure, notably in the USA, the place most present exercise is concentrated.
With sturdy liquidity and a sturdy pipeline of alternatives, BIP seems strategically positioned to profit from the infrastructure funding cycle whereas sustaining its disciplined capital-allocation strategy.
What’s the BIP inventory value goal?
Analysts monitoring the TSX dividend inventory forecast adjusted FFO (AFFO) to develop from US$2.35 per share in 2024 to US$3.26 per share in 2027. BIP is anticipated to pay shareholders an annual dividend of US$1.72 per share this 12 months, which signifies a payout ratio of 67%. A widening AFFO base ought to allow the corporate to extend its annual dividend to US$2.21 per share by 2029, based mostly on consensus estimates.
Right now, BIP inventory trades at 12 occasions ahead AFFO, which is kind of affordable. Whether it is priced at 15 occasions AFFO, the TSX inventory ought to commerce at US$39 in early 2027, indicating an upside potential of 30% from present ranges. If we modify for dividends, cumulative returns will likely be nearer to 40%.
