Should You Buy This TSX Dividend Stock for its 4.6% Dividend Yield? Valued at a market cap of US$4.15 billion, Brookfield Infrastructure (TSX:BIP.UN) stock is trading 31% below its all-time highs. Despite the ongoing pullback, the TSX stock has returned 500% to shareholders since its initial public offering in late 2009. If we adjust for dividend reinvestments, cumulative returns are closer to 1,120%. The drawdown in BIP stock has raised its dividend yield to 4.6%, making it attractive to value and income investors. So, let’s see if you should buy this TSX dividend stock for its 4.6% dividend yield. Should you own this blue-chip TSX dividend stock? Brookfield Infrastructure delivered a solid performance in 2024, showcasing the resilience of its globally diversified portfolio amid a challenging macroeconomic environment. In 2024, it generated funds from operations (FFO) of US$3.12 per unit, indicating a 6% year-over-year growth. The infrastructure giant continues to deploy its capital recycling strategy effectively, securing US$2 billion in proceeds from asset sales while deploying over US$1.1 billion in growth initiatives. These investments included three tuck-in acquisitions expected to contribute more than US$150 million in incremental annual FFO. “Our base business performed well and is more diversified today than at any point during our history, providing more resilience than ever before,” Brookfield noted in its annual report. Management highlighted that its pipeline of investment opportunities is the deepest it’s been in years. By segment, transport emerged as the standout performer with an FFO of US$1.2 billion, representing nearly 40% growth driven mainly by the acquisition of a global intermodal logistics company. The data segment also delivered impressive growth of 21%, reaching US$333 million in FFO as digital infrastructure investments continue to pay off. The utility segment generated US$760 million in FFO, reflecting 7% organic growth when excluding asset sales and currency effects. Meanwhile, the midstream segment delivered US$625 million in FFO with 11% comparable growth, bolstered by higher volumes across its assets, particularly in North American gas storage. Financial markets activity was particularly notable, with Brookfield completing approximately US$10 billion in financings. This included US$8.5 billion to efficiently finance businesses and extend maturities, plus US$1.5 billion of debt repricing to reduce capital costs. What’s next for BIP stock? Looking ahead to 2025, Brookfield has already secured US$850 million in proceeds from asset sales in just the first month of the year. Management expressed confidence in delivering US$5-6 billion in asset sale proceeds over the next two years, citing the return of buyers for core infrastructure assets. The company’s board approved a 6% increase in its quarterly distribution to US$0.43 per unit (US$1.72 annualized), maintaining its track record of consistent dividend growth. Distributions have increased at a 7% compound annual growth rate over the past decade, with the company targeting yearly growth of 5-9% going forward. Brookfield Infrastructure maintains a conservative payout ratio of 67%, retaining capital to fund its robust pipeline of organic growth opportunities. In 2024, it added US$1.8 billion of new projects to its capital backlog, which is expected to deliver attractive returns as these initiatives come online. With its globally diversified portfolio of high-quality infrastructure assets across utilities, transport, midstream, and data segments, Brookfield Infrastructure continues to deliver on its mission of generating sustainable and growing distributions for unitholders while targeting +12-15% total returns over the long term.