A little investment in dividend-paying equities can grow over time. The finest ones offer steady income and price appreciation. Additionally, most brokers don't charge commission, so you can buy a share or two whenever you have money.
Enbridge (NYSE: ENB) and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) are good investments for anyone with less than $200. Here's why they could make more from that tiny cash in the future.
Enbridge has done well increasing shareholder value. The Canadian pipeline and utility corporation has averaged 11.2% yearly returns for 20 years. That surpassed the S&P 500 (9.7%), utility (8%) and midstream (7.7%) sectors. A $200 investment would have risen to about $1,700 at that pace (compared to over $1,400 for an S&P 500 index fund)
The corporation should have enough fuel to keep benefiting investors. An impressive 7.6% dividend from Enbridge gives investors a solid base return. Very solid foundation for that payout. Enbridge's pipelines and utilities generate stable financial flows. It distributes 60%–70% of its stable revenue to investors, giving it a large cushion and allowing it to fund new projects. Enbridge has an investment-grade balance sheet.
Enbridge has a huge expansion backlog and is concluding three natural gas utility acquisitions. These triggers will increase cash flow per share by 3% through 2026 and 5% over the medium run. That earnings growth and its big-time income stream should give Enbridge the gasoline to create 10%–12% average annual total returns in the future years.
Brookfield Infrastructure has also enriched investors well. Since its 2008 founding, the global infrastructure operator has outperformed the S&P 500's 10.6% average annual total return by 14.8%. This helped it grow a $200 investment into over $1,900 (compared to an S&P 500 index fund's $1,000).
The company is well-positioned to grow investor value. Brookfield offers a respectable base return with a 4.7% dividend. The company plans to organically increase FFO per share by 6% to 9% annually. Inflation-linked rate increases, global economic growth, and expansion initiatives drive it. A substantial backlog of data centers and two Intel-built semiconductor manufacturing factories are among the company's projects.
Brookfield Infrastructure recycles capital by selling mature assets and investing the revenues in higher-return opportunities. It purchased numerous data center platforms and a leading intermodal shipping container leasing company last year. The company's capital recycling plan should boost FFO per share growth into the double digits. Add that to its hefty payout, and Brookfield may maintain mid-teens returns.
Enbridge and Brookfield Infrastructure create shareholder value. Hopefully, that continues. They should have the fuel to increase a small investment over time. These equities are also no-brainers for investors with $200 or less to invest.
follow for more updates