Macquarie: High Yield in Infrastructure

Focus: REITs

Tim Plaehn Image Tim Plaehn Investment Research Analyst, Investors Alley

Macquarie Infrastructure Corp (MIC) was initially recommended in our very first issue in June 2014 and still remains a buy in our model portfolio, notes Tim Plaehn, editor of The Dividend Hunter.

The stock has generated a 50% total return since I put it in the portfolio in June 2014. The payout per share has increased every single quarter and is now almost 40% higher than when we added it to the portfolio.

MIC owns a diversified portfolio of infrastructure assets. These holdings include an airport services business that provide fuel, terminal and hangar operations to the private jet customers at local airports.

One of the largest independent bulk liquid marine terminals businesses in the U.S.. Hawaii Gas is the only utility gas distributor and the largest propane distributor in that state serving 68,000 customers. MIC Hawaii also includes a controlling interest in the Waihonu solar facilities on Oahu.

Critchfield Pacific is a design-build mechanical contractor focused on designing and constructing energy efficient HVAC systems and related infrastructure.

Contracted power includes gas-fired power generation facility supplying electricity to New York City and solar and wind power generation facilities primarily in the U.S. Southwest.

Macquarie has grown its revenue, cash flow and dividends through a steady plan of acquisition to expand ownership in the different business sectors. The result has been steady double-digit annual dividend growth, with the payout per share increased every quarter since the 2013 third quarter.

The company just announced an increase in its growth capital investment budget for 2017.