Those who are looking to add some higher yield and additional income to their portfolios may notice that this recent market crash has created quite an opportunity to do so.
As stock prices decline, the corresponding dividend yield one receives increases, leading to a scenario where investors can now receive relatively juicy dividend yields for companies that typically only provide paltry dividend yields, due to pricey valuations.
One stock which has sold off with a broader market, but contains a portfolio of highly lucrative infrastructure assets is Brookfield Infrastructure Partners (TSX:BIP.UN), a subsidiary of parent company Brookfield Asset Management (TSX:BAM.A).
Like a wide range of real estate investment trusts (REITs) that have experienced similar declines as investors weigh the potential impact longer-term coronavirus-linked shutdowns could have on various infrastructure projects and cash flows from existing assets like tall bridges, etc. the real risk with an infrastructure play today comes with new project work and expectations around the future ability of governments to be able to spend and invest in new bridges and roads, after spending trillions to try to stave off a true economic depression, resulting from this pandemic.
Brookfield core holdings alone generate enough cash flow and expected cash flow to continue to pay its distribution. This is one of the dividend companies I'm keeping on my radar right now,
Invest wisely, my friends.
