We continue to like the global infrastructure story; in particular Brookfield Infrastructure Partners (BIP) which engages in utility, transport, energy, and communications infrastructure businesses. In today’s market environment infrastructure is one of the few places that seem to provide steady returns.
BIP today announced solid financial results, a 3.5% increase in its dividend and a 3 for 2 stock split. Unitholders will receive an additional unit for every two units held. On September 14, 2016, the additional shares will be issued to unitholders of record at the close of business on September 6, 2016. Any fractional units will be rounded up to the nearest whole unit. Brookfield Infrastructure’s preferred units will not be affected by the unit split.
We are encouraged not only by their financial results but by their commitment to raising the dividend over time. We will continue to hold this position in client accounts and look to selectively add (or add back) to positions on a case by case basis.