BIP owns dozens of infrastructure assets worldwide, including railroads, telecom towers, ports, pipelines, electricity transmission lines and data centers. But like other utilities, these assets solve essential problems, are hard to replicate and generate annuity-like cash flows.
This stability, coupled with the partnership's investment-grade credit rating and global investment opportunities, has enabled Brookfield to raise its distribution each year since It's also worth noting the partnership structures its activities to avoid generating unrelated business taxable income.
Therefore, unlike most limited partnerships that can have more complicated taxes, BIP's units are suitable for owning in retirement accounts.
However, for investors who prefer to avoid partnership taxes, the firm recently split its shares to launch Brookfield Infrastructure Corporation BIPC. But because of a tax treaty with Canada, U. Distributions are similar to dividends but are treated as tax-deferred returns of capital and require different paperwork come tax time.