There’s a reason why endowments, pension plans and private equity investors love owning infrastructure assets – and it comes down to steady cash flows. Toll roads, transmission lines and other structures generate huge amounts of cash flow. Our latest Best Utility Dividend Stocks List pick knows this first hand.
Our pick is one of the largest private owners of infrastructure assets in the world. This includes thousands of miles worth of rail lines, terminals, midstream, utility assets, data centers and water pipes – you name it! The beauty is that all of these assets generate steady cash flows for our pick.
Even better is that many of these usage contracts are tied to measures of inflation, providing price increases and inflation-proof income to our pick. And with it structured as an MLP, our pick shares the wealth with shareholders.
With 10+ years’ worth of dividend growth already behind it, investors should watch for the stock when it goes ex-dividend on Friday, September 16. (Estimated Date).
In order to make more room for our infrastructure pick, we’ve reduced our holdings in three other utilities.
You can check out the Best Utility Dividend Stocks List to explore all the stocks.
