Solid companyAlthough likely to be effected by increasing interest rates due to debt, BIP will do well because of the regulated nature of thier buisnesses. This tends to follow real inflation. The real growth within BIP lies in thier ability to maintain asset quality above the rate of depreciation and to deal make inorder to buy and sell assets at good value. Secondary to this is the ability to grow assets within a market. Moving into 2nd world markets is the best way to do this, and thier investments in India, Brazil and the like are encouraging. At the same time assets in developed areas like Canada, Austrailia and the like are a good deal due to cyclical economic lows. These present better capital gains opportunities and in special circumstances some growth. Investment in th US is tricky to predict because it will be hit by real inflation at the same time as there is a push for infrastructue development, but not what you could call real growth on a large scale. Still people will call what they may be about to see "growth" in the US as asset quality is improved faster than financial depreciation finally. There may be a bullish bubble to get into early on the infrastructure side. As opposed to the infrastructure development side which will be more real as construction and planning work is done. Investors however realize that infrastructure improvement is a generational asset as opposed to construction activity which is short term. I think therefore that BIP in the US right now is net bullish. It rests on thier deal making and forward planning ability, and they have shown themselves to be proficient in both so far.
To those concerned here that BIP is over spending on thier dividend, let me assure you that they are not. Due to the corporate structure, the net income per share value is skewed by accounting practice to not include various things like capital gains from asset transactions or equity increases in thier propperty due to quality maintainance or improvements. This is because the nature of a trust is supposed to be income based on recurring payments like rent, tolls, royalties, utility fees etc. In short the type of thing a holding company does. Asset sales for example are one time events and not reflected in the same way. The AFFO, adjusted funds from operation, are a good number to use to reflect the cash available for dividends. BIP.UN spent 67% on dividends, which is where they are trying to manage it.The encouraging thing about BIP is that in times aplenty they would prepare to possibly buy back shares with some of the money rather than jump the dividend unsustainably. This is part of the reason why I am as bullish on the trust as I have ever been, and continue to maintain and grow my (small personal) position in BIP.UN within my RRSP.