Yahoo Finance Investing in Canadian Infrastructure: Long-Term Stability and Growth
Written by Amy Legate-Wolfe at The Motley Fool Canada
Infrastructure stocks in Canada are some of the best options out there for those seeking long-term growth. They provide stable income from safe options that will be around no matter what is happening. This includes infrastructure that provides everything from the roads we drive to the water we drink.
But which is the best? Today, we’ll get into some Canadian infrastructure stocks that have been around for years and have even more growth on the way.
Canadian Utilities
Canadian Utilities (TSX:CU) is the only stock on the TSX today with 50 years of dividend increases behind it. So, it’s already a great choice if you’re looking for income. But the infrastructure stock is also a solid option for those seeking safety.
The utility stock invests in gas and electricity services. This includes pipelines for natural gas and water as well as the generation and transmission of energy. It operates throughout North America, as well as in Australia, providing a diversified and growing set of revenue.
Shares are down 10% in the last year, plummeting recently as the company as well as other utility stocks have seen a short-term issue with interest rates. The company’s have had to increase costs to cover expenses from rising interest rates. But this is a short-term issue that the company will handle, providing a good opportunity to hop on the stock.
You can pick up the infrastructure stock trading at 15.75 times earnings, with a 4.95% dividend yield as well.
Brookfield Infrastructure
If you want a broad range of infrastructure, consider Brookfield Infrastructure Partners (TSX:BIP.UN). This company provides a wide range of infrastructure both in terms of assets as well as locations — all with the focus on creating long-term, solid income.
This is also benefitted by the company involving itself in industries that would have high costs associated on start up. So, it’s unlikely that a company would suddenly come along and edge in on Brookfield’s territory. Whether it’s railways, bridges, or renewable energy, you can get exposure to it from this stock.
Brookfield stock has seen shares fall 6% in the last year, but they have recovered 13% year to date. So, again, you can still get in on a deal before shares rise higher. What’s more, it offers a 4.21% dividend yield as of writing.
Aecon Group
Finally, we have Aecon Group (TSX:ARE), which invests in infrastructure through construction and concessions. This includes creating public and private infrastructure projects mainly to do with transportation.
Its concessions projects involve the development, financing, construction and operation of infrastructure projects. However, most revenue comes from its construction segment. Yet the company has had a hard time recovering from the pandemic, with supply-chain disruptions leading to a massive backlog in projects.
Shares remain down by about 11% in the last year; however, these have also recovered 39% year to date. So, you can still pick it up with a dividend yield at 5.52% and see shares rise towards 52-week highs.
The post Investing in Canadian Infrastructure: Long-Term Stability and Growth appeared first on The Motley Fool Canada.
Should You Invest $1,000 In Aecon Group?
Before you consider Aecon Group, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in May 2023... and Aecon Group wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 23 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 5/24/23
More reading
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
2023
