Hey there,
Since T and BEPC are both on our Foundational list - our position on those is quite clear. We like them and have no issues taking a position in these stocks today. The same goes for BIP which we've been eying here. The company is getting quite beat up in recent months and is starting to look attractive. It has a long-term target of generating 6-9% annual cash flow growth (same with distribution growth). From what we can tell, the company is trending toward the high-end of that range this year.
The company recently held its investor day and there were a few notable highlights.
- Despite a difficult environment, it believes that it can continue to make acquisitions that will deliver within or in excess of its targeted rate of return (12-15%) - believes we are in a buyers market
- Data Centre will strive strong organic growth (20%+ IRR) as it has a big backlog (485MW today to 1,700MW by 2026)
- Outlook for 12%+ FFO unit growth (1-3 yrs) via its organic growth backlog
Based on all this and the company's strong operational performance, I'd have no problem with taking a position in BIP today. Just be prepared for continued pressure as the markets tend to punish companies like BIP who are high yielding, have high capex and make acquisitions. This too shall pass and BIP is well position to do quite well when the rates started to stabilize.
Mat
Mat