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Brookfield Infrastructure Partners L.P. (BIP.UN)
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Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
Q: HI 5i,
I would like to initiate a position in Brookfield Infrastructure. I know the difference between BIPun and BIPC on how they are taxed. I would choose to buy BIP.un in a registered account, or BIPC in a regular account. BUT, the price difference is ridiculous ($40 vs $47). And the data I see on YahooFinance do not match, even if these two are more or less equivalent. Eg:
BIP.un: Eps=0.19 P/E=212
BIPC Eps=1.15 P/E=40
Could you clarify where is the truth in these numbers?
I would like to initiate a position in Brookfield Infrastructure. I know the difference between BIPun and BIPC on how they are taxed. I would choose to buy BIP.un in a registered account, or BIPC in a regular account. BUT, the price difference is ridiculous ($40 vs $47). And the data I see on YahooFinance do not match, even if these two are more or less equivalent. Eg:
BIP.un: Eps=0.19 P/E=212
BIPC Eps=1.15 P/E=40
Could you clarify where is the truth in these numbers?
5i Research Answer:
There is a big premium on BIPC, because of the dividend tax credit but also because some funds cannot buy limited partnerships (BIP.UN) so need to buy BIPC. The premium varies quite a lot. But they are economically equivalent, and if looking at financial data or ratios we would only look at BIP.UN for a better financial picture. BIP.UN has a P/E (forward) of 22X based on EPS estimates of $1.31US. Also keep in mind it reports in US dollars but trades in C$.