Thursday, March 17, 2016

Recent Buy: Macquarie Infrastructure Company

March 16, 2016: Bought 40 shares of MIC at $65.15 per share.

Macquarie Infrastructure Company LLC (NYSE:MIC) owns, operates and invests in a diversified portfolio of infrastructure businesses that provides basic services, facilities and technology to businesses and individuals in the United States. The Company's businesses consist of bulk liquid terminals, an airport services business, a gas processing and distribution business, and a portfolio of contracted power and energy investments.

I already own 30 shares of MIC, which I bought in May 2015 at an initial yield on cost (YoC) of 4.98%. This buy reduces my cost basis to $70.08 and increases YoC to 6.21%.

MIC has a 6-year streak of consecutive dividend increases. It pays quarterly dividends of $1.15 per share in the months of March, June, September and December. At my buy price of $65.15, this equates to an attractive yield of 7.06%.

Below is a 5-year chart depicting my buy prices:

My original buy was near the 52-week high of $87.88 – timing-wise not so great! However, I still like the stock and if it continues to drift lower, I'll find a good opportunity to lower my cost basis again...

I like MIC for several reasons, including a solid 7% yield and an impressive double digit growth rate. It would be interesting to see how long MIC will continue to deliver double digit growth.

Following is a table containing updated ratings of MIC from various sources:'s DARS Rating  3.4/5
 TheStreet Ratings Rating  Hold [C]
 The Motley Fool's CAPS Rating  (****-)
 Thomson Reuters StockReport+ (3/10) Negative 
 S&P Capital IQ Stock Report Sell (Quality: B-) 
 Zacks Rank (Style Scores*) 3-Hold (VGM:C)
  †combined Value/Growth/Momentum score

recent article by Spy Hill Research presents a good case for continuing to invest in MIC. With a valuation of $98 per share, MIC trades at a discount of about 33%. Furthermore, full year 2015 results were impressive, with MIC posting an 18% increase in free cash flow per share compared with last year, from $4.85 to $5.71. The company also reiterated guidance about expected dividend payments for 2016, namely a total distribution of $5.00 to $5.10 per share.

40 shares of MIC adds $184.00 to DivGro's projected annual dividend income. I've updated my portfolio to reflect this purchase.

Do you own shares of MIC? If so, what is your cost basis and do you like the stock at the current price? Please comment below.


  1. Nice purchase, FerdiS. Ive been going thru their quarterly/annual reports and their investor presentations. Really like the portfolio mixture and the assets they hold and looks like a great long term investment. I still havent made up my mind, but its definitely on my shortlist.

    Best wishes

    1. Thanks, R2R -- MIC is one of my riskier investments, though, as you say, the company has a nice portfolio mix and a good variety of assets. I'm hoping to enjoy the high yield for a few more years... let's see how it goes!


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