Brookfield Infrastructure: Riding The HALO Trade With A 5% Dividend Yield

Kenio Fontes2.17K FollowersFollow5ShareSavePlay(10min)CommentsSummaryBrookfield Infrastructure remains a top pick for the HALO trade, offering heavy assets with low obsolescence and robust, inflation-indexed cash flows.BIP's portfolio stability is underpinned by 85% contracted or regulated FFO, with long-term durations and minimal market sensitivity, supporting predictable growth.Organic FFO growth targets of 6–9% plus a 5% dividend yield suggest potential total returns above 10%, with recent FFO CAGR near 14%.Valuation remains compelling at ~11x P/FFO (2025), with a healthy balance sheet and limited risk of multiple contraction. Stephen Simpson/DigitalVision via Getty Images Since my article (check it here) on Brookfield Infrastructure (BIP), BIP stock has delivered a total return of nearly 20%. In the same period, the S&P 500 (SPY) fell 2%. Also, thisThis article was written byKenio Fontes2.17K FollowersFollowEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Disclosure: I/we have a beneficial long position in the shares of BN, META, GOOGL, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.