With inflation running hot, these contracts are paying big dividends for this company. The infrastructure company noted that its FFO grew by 10% organically in the second quarter, coming in above its 6% to 9% annual target, reflecting the elevated inflation driving its rates higher.The company's toll-road portfolio was one of the big beneficiaries here as well. It noted that FFO across its global toll-road portfolio was up 16%, driven by inflationary tariff increases and an 8% uptick in traffic levels.
Brookfield Infrastructure (BIPC) (BIP) recently reported record second-quarter results. The global infrastructure operator's funds from operations (FFO) surged 30%. Although a needle-moving acquisition was the primary driver, the company also benefited from elevated inflation, which allowed it to increase its contract rates. Brookfield's inflation-driven growth bodes well for its dividend. The company aims to grow its payout, which currently yields 3.1%, by 5% to 9% per year. With inflation fueling organic growth above the top end of its annual target range, Brookfield could grow its payout at a high-end rate in the coming years if inflation remains high.
Source: Motley Fool
Related Articles:
Dividend Growth Stocks News
- 3 Reliable Dividend Stocks Offering Up To 3.5% Yield - Yahoo Finance - 5/16/2025
- Recession Worries? Here's 1 of the Best Dividend Stocks for Turbulent Times - Nasdaq - 5/11/2025
- 2 Dividend Stocks to Double Up on Right Now - Yahoo Finance - 5/16/2025
- The Best Warren Buffett Dividend Stocks - Kiplinger - 5/15/2025
- 3 Dividend Stocks to Buy Now That Are Crushing the S&P 500 in 2025 - The Motley Fool - 5/16/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
This High-Yield Dividend Stock Is Getting a Big Inflation-Driven Boost
Posted by D4L | Thursday, August 25, 2022 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.