Brookfield Infrastructure Corporation's (NYSE:BIPC) dividend will be increasing from last year's payment of the same period to $0.455 on 31st of March. Based on this payment, the dividend yield for the company will be 3.8%, which is fairly typical for the industry.

Brookfield Infrastructure's Distributions May Be Difficult To Sustain

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Brookfield Infrastructure isn't generating any profits, and it is paying out a very high proportion of the cash it is earning. This makes us feel that the dividend will be hard to maintain.

Looking forward, earnings per share could rise by 14.8% over the next year if the trend from the last few years continues. This is the right direction to be moving, but it is probably not enough to achieve profitability. Unless this can be done in short order, the dividend might be difficult to sustain.

Brookfield Infrastructure Doesn't Have A Long Payment History

The dividend's track record has been pretty solid, but with only 6 years of history we want to see a few more years of history before making any solid conclusions. Since 2020, the annual payment back then was $1.29, compared to the most recent full-year payment of $1.82. This means that it has been growing its distributions at 5.9% per annum over that time. The dividend has been growing as a reasonable rate, which we like. However, investors will probably want to see a longer track record before they consider Brookfield Infrastructure to be a consistent dividend paying stock.

The Company Could Face Some Challenges Growing The Dividend

Investors could be attracted to the stock based on the quality of its payment history. Brookfield Infrastructure has seen EPS rising for the last five years, at 15% per annum. It's not great that the company is not turning a profit, but the decent growth in recent years is certainly a positive sign. Assuming the company can post positive net income numbers soon, it could has the potential to be a decent dividend payer.

Brookfield Infrastructure's Dividend Doesn't Look Sustainable

Overall, we always like to see the dividend being raised, but we don't think Brookfield Infrastructure will make a great income stock. Strong earnings growth means Brookfield Infrastructure has the potential to be a good dividend stock in the future, despite the current payments being at elevated levels. Overall, we don't think this company has the makings of a good income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.