Interested In Brookfield Infrastructure Partners LP. (NYSE:BIP)’s Upcoming $0.47 Dividend? You Have 2 Days Left

Have you been keeping an eye on Brookfield Infrastructure Partners LP.’s (NYSE:BIP) upcoming dividend of $0.47 per share payable on the 29 June 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 30 May 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Brookfield Infrastructure Partners can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. Check out our latest analysis for Brookfield Infrastructure Partners

5 questions I ask before picking a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

• Is it paying an annual yield above 75% of dividend payers?

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

• Has the amount of dividend per share grown over the past?

• Does earnings amply cover its dividend payments?

• Will the company be able to keep paying dividend based on the future earnings growth?

Does Brookfield Infrastructure Partners pass our checks?

BIP currently pays out twice what it is earning, according to its trailing twelve-month data, which suggests that the dividend is not well-covered by earnings by any means. Going forward, analysts expect BIP’s payout to fall to 121.48% of its earnings, which leads to a dividend yield of 5.29%. Moreover, EPS should increase to $1.73, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of BIP it has increased its DPS from $0.71 to $1.88 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. Relative to peers, Brookfield Infrastructure Partners has a yield of 4.93%, which is high for Electric Utilities stocks.

Next Steps:

Keeping in mind the dividend characteristics above, Brookfield Infrastructure Partners is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three important factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for BIP’s future growth? Take a look at our free research report of analyst consensus for BIP’s outlook.

2. Valuation: What is BIP worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether BIP is currently mispriced by the market.

3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.