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Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Hi team,
BIPC is currently still 45% below its 52week high. Bn is now only 4% below its 52week high . Do you see BIPC playing catch up here ? Is it not a more compelling buy at this point than Bn while it’s down here , plus it’s almost 5% div ? I was looking for your thoughts if it would be wise to buy some BIPC at these levels and collect the nice div while waiting or sp recovery ?
Thanks ,
Shane
BIPC is currently still 45% below its 52week high. Bn is now only 4% below its 52week high . Do you see BIPC playing catch up here ? Is it not a more compelling buy at this point than Bn while it’s down here , plus it’s almost 5% div ? I was looking for your thoughts if it would be wise to buy some BIPC at these levels and collect the nice div while waiting or sp recovery ?
Thanks ,
Shane
5i Research Answer:
We think BIPC has good recovery potential now that rates appear to be peaking. But we would not really compare it to BN. BN is much larger, more diverse and is specifically tailored to growth. BIPC, paying out a lot of cash flow as dividends, has less capital for growth. We would be fine buying either today, but would still prefer BN if an investor was more growth-oriented.