No. of Recommendations: 0
The one thing that is pretty much assured is that BIP will continue to grow its asset base, and it is likely to sell more shares (units) to do so. An investor in BIP must have confidence in the management team's commitment and ability to pursue only those transactions that will meet its 12-15 percent rate of return goal so that the value of the firm will continue to grow at a rate higher than the growth in the share count.

I think this key to understand the dilution. They are not raising the funds just for the sake of continued operations, they are doing it to buy assets with the expectations of a 12-15% return. They seem to have been doing this all along and it seems to have been working from what I can see. the share price has be steadily increasing while the yield has been maintained.

So the dilution of shares really doesn't bother me too much. Since (I believe) they are required to pay out a high percentage of earnings as a dividend, they won't retain the cash from existing operations to reinvest. So selling more "units" works as long as the new assets purchased continue to return what they expect.
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