BIP dividend: history, coverage and yield
BIP’s distributions rise from US$1.90 per unit to US$2.14 in the forecast, within management’s 5%–9% annual target. BIP’s 2025 FFO payout ratio was 66%, leaving a margin between operating earnings and distributions.
How much does BIP pay in distributions?
Base distributions rise from US$1.90 per unit to US$2.14. That reflects the 6% increase approved for 2026 and sits within the 5%–9% annual target. The bear case reaches only US$1.92 after an initial pause and later 3% increases, because debt, maintenance spending and project risk could force cash preservation. The bull case reaches US$2.31 by applying the full 9% target, which requires strong FFO and cash conversion.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Distributions including GP incentives, per unit | 2.13 | 1.99 | 1.87 | 1.75 | 1.66 |
| − Share buybacks, per share | 0.07 | 0.00 | 0.03 | 0.00 | 0.00 |
| = Paid out more, per share | 0.96 | 0.80 | 0.83 | 0.62 | 0.63 |
Is BIP's dividend covered by its cash?
FFO is closer to operating performance, but it is not cash in the bank. Adjusted Funds from Operations, or AFFO, goes further by subtracting maintenance capital: the money needed to keep existing assets safe and productive. BIP’s 2025 FFO payout ratio was 66%, leaving a margin between operating earnings and distributions.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Operating earnings (company's measure) | 980 | 943 | 835 | 873 | 739 |
| − Distributions including GP incentives | 1,681 | 1,576 | 1,453 | 1,352 | 1,190 |
| − Share buybacks | 58 | 0 | 25 | 0 | 0 |
| = Paid out more than it earned | 759 | 633 | 643 | 479 | 451 |
| Paid out, % of operating earnings | 177.4% | 167.1% | 177.0% | 154.9% | 161.0% |
What this means. The company paid shareholders more than it earned from its businesses because dividends and share buybacks were larger than its operating profit.
What could change BIP's dividend?
Management targets 6%–9% organic growth and 5%–9% annual distribution increases. It targets a 60%–70% FFO payout ratio. Guidance calls for 10% FFO-per-unit growth in 2026. It calls for 12% growth over the next 2–3 years. The annual growth-investment target is US$2,000–3,000 million.
The view would move toward the bear case during 2027–2029 if projects are delayed or underused, AI commitments weaken, margins fall or subsidiary debt refinances at higher cost. Those events would reduce FFO, buybacks and distribution capacity. [scenario M1][scenario M2]
What is BIP's dividend yield today?
Operating-earnings growth slowed in 2025, while net income can swing with asset-sale gains and other accounting items. At C$52.99, the next-12-month P/E is 66.1x. The 4.9% distribution yield sits beside C$41,957 million of market value; distributions exceeded operating earnings per share, and book value per share declined over the period shown. FFO per unit growth is the key test.
| Today (Oct 17, 2026) | |
|---|---|
| Share price | 52.99 |
| Market value (every class) (calculated) | 41,957 |
| Price to book (calculated) | 3.9x |
| P/E, next 12 months (calculated) | 66.1x |
| Dividend yield (calculated) | 4.9% |
What this means. The market value does not truly count every type of share because it leaves out preferred units and the company's internal voting shares.