Dividends4Life: This High-Yield Dividend Stock Is Getting a Big Inflation-Driven Boost

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

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