My thoughts on BIP.UN

Will the Canadian economy begin slowing in the coming months? My bet is yes but I have a history of being wrong when it comes to telling the future. So, take the following with reservations.

I am building a wish list of investments I would like to add to my retirement portfolio if there is a correction in the near future or even better, a bear market. One stock on my list is Brookfield Infrastructure Partners LP (BIP.UN on the TSX).

My overall impression? BIP.IN appears to be a buy for long-term investors with a focus on income. Hey, that's me! I knew I liked BIP.UN and there is a lot to like.

As an income investor, I like the generous 5.1% yield that has increased annually for 15 consecutive years. The annual growth rate has been between 6-8%. With a payout ratio of about 67% of Funds from Operations (FFO) in 2024, the dividend look sustainable.

The PEG Ratio of 54.5 may signal overvaluation relative to growth prospects but with a solid correction, or bear market, this overvaluation may lessen or even disappear.

All the above and more says "buy" but there are some clouds on the horizon. For instance, with a debt load of about 80 Billion U.S., BIP.UN could suffer in a rising interest rate environment.

If you follow analysts, the consensus is that BIP.UN is a strong buy. I find analysts are often wrong but still worth a look. Me? I see BIP.UN as a hold if you are already in the game and a buy if the market softens.