Earn a 4.8% Yield With Annual Dividend Increases

If you’ve been following this column, you’d know that I cover a lot of high-yield stocks. But that doesn’t mean we should ignore low-yield companies altogether, especial when a “low yield” is actually 4.8%. You see, in this day and age, it doesn’t take a double-digit yielder to whet investors’ appetites. The average S&P 500 company pays just 1.8% at the moment. When a company pays 4.8%, investors are already locking in a yield that’s more than twice the benchmark’s average. And if the company can consistently grow its payout, investors will get a chance to earn a much higher yield on cost down the road.

I’m talking about Brookfield Infrastructure Partners L.P. (NYSE:BIP), a publicly traded partnership headquartered in Toronto, Ontario, Canada. To most investors, Brookfield Infrastructure Partners may not be a familiar name, and that could be because it came into existence as a spin-off from Brookfield Asset Management Inc (NYSE:BAM) in 2008. As the name suggests, the partnership focuses on infrastructure. Despite being a relatively new player in the business, Brookfield Infrastructure Partners has already established a solid track record of returning cash to shareholders.

Source: Income Investors

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