Brookfield: A Quarter-Century Grind

Brookfield Infrastructure. The name itself sounds like a forgotten railway line. Since 2008, though, it’s been less about rust and more about returns. Nearly 14% annually. A solid number in a world full of smoke and mirrors. They built something. Not skyscrapers, but a system. A quiet machine for turning capital into…well, more capital.

The question isn’t if they can keep it up. The question is, can anything keep it up that long? They’re talking about turning a grand into something resembling a small fortune over the next 25 years. A quarter-century. That’s a long time to stay out of the red. A long time to avoid the inevitable squeeze.

The Numbers Tell a Story

Funds from operations. FFO. Sounds like alphabet soup for accountants. But it’s been growing. 14% a year, from 2009 to 2024. That fueled dividends, growing at 9% annually. Income and earnings, working in tandem. A rare sight. It turned a thousand dollars into ten grand over sixteen years. Not bad. Not bad at all. But the past is a ghost. It doesn’t guarantee a future.

They’re predicting over 10% growth going forward. Inflation, volume, capital projects, acquisitions. The usual suspects. They’ve positioned themselves to ride the AI wave. Everyone’s riding that wave now. It’s getting crowded. They’re aiming for 14% again. Ambitious. They’re offering a 4% dividend. A decent yield in a world where savings accounts collect dust. They plan to boost that dividend 5 to 9% a year. Promises, promises.

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Ten percent growth, a 4% yield. If it holds, a thousand dollars today could become twenty-five grand in 25 years. It’s a long bet. A gamble, really. But in this game, everyone’s gambling. Higher returns are possible, of course. If earnings rise closer to that historical average, and the market decides to be kind. But kindness is a rare commodity.

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2026-01-20 16:13