The Richest Man In History Would’ve Loved This Stock
He’s the richest person in history.
I’m not talking about Warren Buffett. At his peak, Buffett’s wealth is less than one-fifth this man’s fortune.
#-ad_banner-#Bill Gates doesn’t even come close. Neither does Wal-Mart founder Sam Walton, telecom magnate Carlos Slim or Mark Zuckerberg, the founder of Facebook.
None of these men can hold a candle to the $336 billion fortune (adjusted for inflation) amassed by a name synonymous with wealth… John D. Rockefeller.
But when I tell you I’ve found what I call a “Rockefeller” investment, I’m not saying it because I think it will make us billionaires — even though I’d love to be able to say that.
No, I call it a “Rockefeller” investment because of what this company invests in.
This stock owns a rare breed of assets that are nearly impossible for small investors like you and me to purchase directly. Typically, only major companies or industrial titans like Rockefeller can buy them.
Most people know Rockefeller got rich through his company, Standard Oil. And while I want to invest in the same sort of business that he did, this “Rockefeller” pick has nothing to do with oil.
But that’s fine by me, because when you look closely at exactly why Rockefeller got rich, you realize Standard Oil didn’t turn Rockefeller into a billionaire simply because it was in the oil business.
Standard Oil made Rockefeller the richest man in history because the company held a monopoly in its market… while also paying a fat dividend on the shares he held.
And now, I’ve found an investment that lets you own stakes in dozens of monopolies across the entire world. And in addition to capital gains, it pays investors a 5% dividend each year to own it.
The company’s name is Brookfield Infrastructure (NYSE: BIP).
What’s appealing about BIP is that nearly all of the partnership’s revenues are under contracts or are regulated. Meanwhile, those practically guaranteed revenues are coming from one of the most compelling portfolios I’ve ever seen.
The partnership owns ports all over Europe… toll roads in South America… railroads in Australia… and thousands of miles of electric power lines in the United States and Canada. These assets are just about impossible to compete with. No one is going to build another electric grid or a new port next to one already in place.
I can only think of one, maybe two other places where you can invest in a stable group of monopolistic holdings this broad from all over the planet.
But any “Rockefeller” idea would be incomplete if it ignored dividends. After all, it was Rockefeller who once quipped: “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”
Right now BIP pays $0.53 per unit each quarter. That’s a 92% increase since 2010 and gives the units a yield of 5%.
But I think that yield is going to rise in the years ahead. Not only does Brookfield explicitly state its aim is to raise its distributions 3% to 7% a year, but it also aims to return 60% to 70% of its income to investors in the form of dividends.
It’s pretty obvious to see why I like BIP. From its stellar collection of infrastructure monopolies to its rising dividends, I think it’s safe to say it’s a stock you could feel comfortable owning forever.
That’s not to say there isn’t any risk of owning BIP. In the 2008 market sell-off, it fell too, although not as much as the broader market… and it rebounded quickly. But if you’re looking for a long-term holding that pays a solid dividend, I think Brookfield Infrastructure is worth further research.
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