Written by Karen Thomas, MSc, CFA at The Motley Fool Canada
The stock market continues to show resilience and fortitude, with the TSX trading at all-time highs. It is, in fact, closing in on $35,000 as investor sentiment remains positive and economic performance continues to hold up. But at a time like this, it’s always good to have a plan B. In this article, I’ll discuss a Canadian dividend stock that has shown resilience in the past and that’s well set up to withstand market volatility.
Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. (TSX:BIP.UN) is a global infrastructure company. It owns and operates long-life assets in the utilities, transport, midstream, and data industries across the globe. These industries are essential, and this makes Brookfield well-positioned in the infrastructure space. Also, in times of economic and market weakness, Brookfield Infrastructure’s assets have the support of strong secular demand trends. This will ensure that the company’s cash flows and stock price remain relatively unscathed even through market choppiness.
In Brookfield’s latest quarter, the company posted a 10% increase in funds from operations, to $709 million. This increase was driven by strong results in all of its businesses. The notable standouts were Brookfield’s data and midstream segments, which increased 46% and 12%, respectively.
A Canadian dividend stock with unmatched scale
Brookfield Infrastructure is truly a global company. It’s backed by a strong balance sheet, partnerships, scale, and of course access to public and private markets. It’s also one of the few pure-play, publicly-traded, global infrastructure vehicles.
Finally, Brookfield Infrastructure is part of the larger Brookfield Companies group, which means that it has access to a leading asset management group, Brookfield Asset Management. This backing goes a long way in securing financing and partnerships, as well as origination opportunities.
Today, this Canadian dividend stock is yielding a generous 4.6%. This yield is backed by steadily rising cash flows, a strong balance sheet, and earnings. As you can see from the graph below, Brookfield Infrastructure Partner’s stock price is also trading at all-time highs, just like the TSX, as it reflects this strong and steady outlook.
Looking ahead
At this time, Brookfield Infrastructure Partners is in the midst of following through on its capital recycling goals. These goals include selling off older assets that are mature and underperforming, and increasing exposure to faster growing segments, such as data infrastructure. So far in 2026, the company has finalized over $1 billion in asset sales, including the sale of its Brazilian electricity transmission assets. These sales have improved Brookfield’s liquidity position, which now stands at $2.5 billion.
