Brookfield Infrastructure Companions (TSX: BIP.UN) at present yields 4.9%, however that’s not the one purpose Motley Idiot Canada’s Iain Butler thinks it might be a wise inventory to purchase now. Watch the video to study extra. Choose to learn? There’s a transcript under.

Nick Sciple: I’m Motley Idiot Canada Senior Analyst Nick Sciple, and that is “The 5-Minute Main,” right here to make you a better investor in about 5 minutes. Interested by extra inventory concepts from us, and even formal suggestions? Click on the icon within the higher proper nook for extra.

As we speak on “The 5-Minute Main,” we’ll be discussing Brookfield Infrastructure and why it’s one of many high shares on our radar this month in October 2025. My visitor in the present day to assist me do that’s Motley Idiot Canada Chief Funding Officer Iain Butler. Iain, thanks for becoming a member of me.

Iain Butler: Nice to be right here, as all the time, Nick.

Nick: For the uninitiated, Iain, what’s Brookfield Infrastructure? What does the corporate do?

What does BIP do?

Iain: Brookfield Infrastructure is however one — I like to make use of the time period — “tentacle” within the Brookfield empire. At its core, Brookfield Infrastructure is likely one of the largest homeowners and operators of important world infrastructure networks that exists. It owns important spine property to the worldwide financial system, and I’m speaking about long-life, high-quality property that present important providers, like utilities, transport, toll roads, information infrastructure. We’re speaking pipelines, transport pure fuel, and the info centres which might be within the information day-after-day as of late. So, Brookfield Infrastructure is a really important part of the worldwide financial system. It’s a enterprise that’s diversified throughout 4 segments. It owns utilities. Regulated companies are included on this section, like electrical energy transmission, pure fuel distribution, all of which generate very steady and predictable money flows.

There’s additionally the parts of transportation, midstream vitality — which is pipelines — and once more, information infrastructure. We’re speaking rail strains, ports, pure fuel pipelines, and once more, the rising portfolio of information infrastructure, which incorporates cell towers as properly, which is all the time an attention-grabbing asset.

All of that is bundled up right into a bundle, however overarching this bundle of property — a extremely distinctive assortment of property, I’ll add — is the Brookfield technique, and Brookfield’s technique all through the empire is to accumulate property on a price foundation, and actively handle them. Brookfield is definitely an operator of those property, which tends to set them aside in a world the place there’s monetary homeowners of these items, however not essentially operators. Brookfield combines them each, and so they have a tendency to purchase these property on the relative low-cost. They do have some turnover of their portfolio, so that they’ll decide one thing up, they’ll repair it up, function it for a spell, after which promote it for a premium worth. So, you get the regular earnings part that the property present, and also you get a kind of a extra lively administration technique in a while high of that.

Which is engaging.

Nick: Yeah, you consider these infrastructure property, actually essential always to offering the spine to our financial system and what we have to preserve development. Once we speak about proper now, right here as we sit in October 2025, why ought to of us be enthusiastic about this enterprise and the inventory behind it?

Is Brookfield Infrastructure an excellent inventory to purchase?

Iain: One of many coolest issues about Brookfield Infrastructure is that it’s publicly out there to buyers such as you, me, and everybody watching this video. Traditionally, these are the sorts of property which might be owned by the likes of governments, sovereign wealth funds and different institutional buyers, like pension funds or life insurance coverage corporations, corporations with lengthy life liabilities. You and I traditionally haven’t had entry to personal a toll street or a port or a non-public rail line, however Brookfield and others have actually modified this sport and cracked this area of interest open for our portfolios, and our portfolios are higher off for it. However talking to Brookfield Infrastructure particularly, the enterprise is exceptionally well-positioned to profit from three of the most important world developments in the present day. These are digitalization, decarbonization, and deglobalization. Huge capital funding is required for information centres, renewable vitality transmission, and the onshoring of important provide chains, and Brookfield is a direct beneficiary of this spending.

One other level right here is that within the present financial surroundings, Brookfield Infrastructure affords inflation-protected money flows. It’s locked in with long-life contracts, and these contracts have a tendency to maneuver with inflation, so that you don’t get an erosion of your worth the longer you maintain it.

Lastly, it pays a horny dividend, a dividend that gives a 4.9% yield, and administration has said a purpose of delivering 5% to 9% annual development, and that is one thing that they’ve caught to over so long as I’ve adopted this firm. So, it is a dependable dividend grower to associate with the present engaging yield. Once more, we’ll return to that overarching worth technique that Brookfield affords, the place you’re getting some portfolio turnover that’s going so as to add worth alongside the best way.

Nick: Sure, you bought important infrastructure, well-managed by a fantastic administration group, in a market surroundings the place demand for these types of issues goes up.

Additionally in a macroeconomic surroundings the place inflation-protected money circulation might be extra engaging in the present day than not less than 5 and 10 years up to now. Iain, thanks a lot for becoming a member of us for this version of “The 5-Minute Main.” Hope to see all people subsequent time.

Iain Butler: Idiot on.