Buy These 3 Stocks to Build a Strong Foundation

: BIPC | Brookfield Infrastructure Corp. Cl A News, Ratings, and Charts

BIPC – Amid growing economic uncertainties, investors seeking stability and reliable returns could consider investing in fundamentally stable stocks Brookfield Infrastructure (BIPC), Brink’s (BCO), and Balfour Beatty (BAFYY), which offers quality dividends and consistent returns. Read more…

While the robust economic data indicates that the economy is not on the brink of a recession, it might prompt the Federal Reserve to consider another interest rate hike in June’s meeting.

Amid a volatile market backdrop, investors could consider investing in dividend-paying stocks Brookfield Infrastructure Corporation (BIPC - Get Rating), The Brink’s Company (BCO - Get Rating), and Balfour Beatty plc (BAFYY - Get Rating) which seem relatively stable and offer steady returns.

US stocks had a mixed performance on Tuesday, with earlier gains being pared as investors awaited the completion of a debt ceiling deal between House Speaker Kevin McCarthy and President Joe Biden. The proposed deal would raise the debt ceiling until January 2025 and includes spending cuts and deficit reduction measures.

Additionally, the Commerce Department recently reported that the core personal consumption expenditures price index rose 0.4% in April and 4.7% from a year ago, suggesting that price pressures are still lingering in the economy. Moreover, consumer spending increased by 0.8% for the month, as personal income increased by 0.4%.

On the other hand, economists have warned about the risk of a recession due to the central bank’s aggressive interest rate hikes to combat high inflation. Despite that, Fed looks unlikely to cut interest rates anytime soon as inflation is still high and away from the Fed’s 2% target.

In addition, Billionaire investor Cliff Asness recently raised concerns about conflicting signals from stocks and bonds, suggesting a potential scary sell-off in stocks if a recession occurs.

Let’s take a look at the stocks mentioned above:

Brookfield Infrastructure Corporation (BIPC - Get Rating)

BIPC is engaged in the ownership and operation of regulated gas transmission systems in Brazil and of regulated distribution operations in the United Kingdom, as well as electricity transmission and distribution, and gas distribution in Australia. It is a subsidiary of Brookfield Infrastructure Partners L.P. (BIP - Get Rating).

On April 12, 2023, BIPC announced its intention to acquire 100% of the common equity of Triton International Limited (TRTN - Get Rating) in a cash and stock transaction. The deal values TRTN’s common equity at approximately $4.70 billion and reflects a total enterprise value of approximately $13.30 billion.

TRTN is the world’s largest owner and lessor of intermodal shipping containers and is a critical provider of global transport logistics infrastructure, with a fleet of over 7 million twenty-foot equivalent units. The transaction provides BPIC with a high cash yield, downside protection, and a growth platform in the transportation and logistics sector.

On May 3, the board of directors of BIPC declared a quarterly distribution in the amount of $0.3825 per unit, payable on June 30, 2023.

The company pays an annual dividend of $1.53 per share, which translates to a 3.25% yield on the current prices. Its four-year average dividend yield is 2.85%.

BIPC’s revenue increased 23.7% year-over-year to $4.22 billion in the first quarter that ended March 31, 2023. Its consolidated funds from operations grew 7.5% year-over-year to $1.14 billion. The company’s FFO increased 12.4% and 12.5% from the prior-year quarter to $554 million and $0.72 per unit, respectively.

BIPC’s FFO and revenue are expected to rise 13.7% and 7.3% year-over-year to $3.08 per unit and $15.47 billion, respectively, in the current fiscal year 2023.

BIPC has gained 20.9% year-to-date and 11.5% over the past month to close the last trading session at $46.82. Its 24-month beta is 0.53.

BIPC’s POWR Ratings reflect this promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

It also has a B grade for Stability and Quality. In the 64-stock Utilities-Domestic industry, the stock is ranked second.

Click here to access BIPC’s ratings for Growth, Value, Momentum, and Sentiment.

The Brink’s Company (BCO - Get Rating)

BCO provides secure transportation, cash management, and other security-related services internationally. The company’s offerings include armored vehicle transportation of valuables, automated teller machine (ATM) management services, network infrastructure, and cash-in-transit services.

On May 4, BCO declared a 10% increase in the regular quarterly dividend on its common stock, from 20 cents per share to 22 cents per share. The dividend is payable on June 1, 2023.

While BCO has a four-year average dividend yield of 1.08%, it pays an annual dividend of $0.88, which translates to a yield of 1.29% on the prevailing price level. The company has grown its dividend payments at a CAGR of 11% over the past three years.

BCO’s non-GAAP revenue increased 10.4% year-over-year to $1,19 billion in the first quarter of fiscal 2023. Its non-GAAP operating profit grew 13.6% from the year-ago value to $127.40 million. The company’s non-GAAP income from continuing operations attributable to BCO amounted to $55 million or $1.16 per share.

Analysts expect BCO’s revenue and EPS to rise 6.7% and 3.1% year-over-year to $1.21 billion and $1.33, respectively in the current fiscal quarter ending June 2023. The company has surpassed the consensus revenue estimates in three of the trailing four quarters, which is impressive.

The stock has gained 27.2% year-to-date to close its last trading session at $66.45. It has a 24-month beta of 0.87.

BCO’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, equating to a Buy in our proprietary rating system.

The stock also has a B grade for Growth and Stability. It is ranked #5 among 41 stocks in the B-rated Outsourcing – Business Services industry.

Beyond what we’ve stated above, we have also given BCO grades for Value, Momentum, Sentiment, and Quality. Get all the BCO ratings here.

Balfour Beatty plc (BAFYY - Get Rating)

Headquartered in London, United Kingdom, BAFYY funds, designs, develops, builds, and maintains infrastructure. It operates through three segments, Construction Services; Support Services; and Infrastructure Investments.

On March 28, BAFYY announced that its Building operations and joint venture partner Metcon Inc., along with Right Build and Varnedoe Construction, had been chosen by the Raleigh-Durham Airport Authority to carry out a phased construction program worth around $650 million at Raleigh-Durham International Airport (RDU).

BAFYY pays an annual dividend of $0.26, which translates to a yield of 3.66% at the current market price. Its four-year average dividend yield is 1.74%. The company has raised its dividend at CAGRs of 23% and 26.9% over the past three and five years, respectively.

During the fiscal year that ended December 31, 2022, BAFYY’s group revenues increased 6.2% year-over-year to £7.63 billion ($9.45 billion). Its gross profit grew 52% from the year-ago quarter to £427 million ($529 million). The company’s profit for the year rose 106.5% year-over-year to £287 million ($355.56 million).

Street expects BAFYY’s revenue to increase 5% year-over-year to $9.66 billion for the fiscal year ending December 2023.

BAFYY has gained 44.8% over the past year and 14.3% year-to-date to close the last trading session at $9.25. The stock has a 24-month beta of 0.69.

It is no surprise that BAFYY has an overall rating of A, translating to a Strong Buy in our proprietary rating system.

BAFYY has an A grade for Growth and Stability and a B for Value. Within the B-rated Industrial – Services industry, it is ranked #7 out of 80 stocks.

In addition to the POWR Ratings just highlighted, you can access additional BAFYY ratings for Sentiment, Quality, and Momentum here.

The Bear Market is NOT Over…

That is why you need to discover this timely presentation with a trading plan and top picks from 40-year investment veteran Steve Reitmeister:

REVISED: 2023 Stock Market Outlook > 

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


BIPC shares were unchanged in premarket trading Wednesday. Year-to-date, BIPC has gained 22.40%, versus a 9.78% rise in the benchmark S&P 500 index during the same period.


About the Author: Kritika Sarmah


Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
BIPCGet RatingGet RatingGet Rating
BCOGet RatingGet RatingGet Rating
BAFYYGet RatingGet RatingGet Rating
BIPGet RatingGet RatingGet Rating
TRTNGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Trump or the Fed More Important to Stock Investors?

The S&P 500 (SPY) is flirting with new highs once again. But it is not very clear what is driving these stock price gains. That is why Steve Reitmeister shares his latest views including a market outlook, trading plan and top picks to stay on the right side of the action.

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

Read More Stories

More Brookfield Infrastructure Corp. Cl A (BIPC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All BIPC News