This 5% Dividend Stock Could Be the Ultimate Retirement Hack

There are more than a few great investments on the market that can provide recurring and growing income. While this can make it seem like the ultimate retirement hack, there are some other income-producing options out there. That includes one dividend stock that’s tied to growth initiatives and offers a near 5% yield.

The dividend stock to consider is Brookfield Infrastructure Corporation (TSX: BIPC), and here’s why the stock belongs in your portfolio.

Meet Brookfield Infrastructure

Most investors are aware of the Brookfield name. While Brookfield Infrastructure is part of that larger, well-known Brookfield family, this dividend stock provides a unique emphasis on critical infrastructure.

The company operates utilities, transportation networks, midstream operations, and even data infrastructure. In other words, Brookfield Infrastructure encompasses everything from regulated utilities and pipelines to rail networks, data centres, and the toll roads that connect them.

Those assets are critical components of the global economy that people rely on every day. This gives the company a recurring and predictable revenue stream that can be used to fund investments and pay that dividend.

Many of those operations also benefit from regulated or contracted revenue, which provides another layer of predictability. That’s important for capital-intensive businesses such as Brookfield, particularly when economic conditions or interest rates change.

Better still, the business continues to grow. In the most recent quarter, Brookfield Infrastructure reported funds from operations (FFO) of US$702 million. That’s a 10% increase over the prior year, while FFO per unit also increased 10% to US$0.89 in the quarter.

Even better, there’s also plenty of room for that growth to continue.

Brookfield has exposure to several long-term investment trends. That includes the growing need for data infrastructure and continued investment in utilities and transportation. That gives Brookfield some long-term growth potential in addition to its defensive tilt.

A nearly 5% dividend built to keep growing

One of the main reasons why investors turn to Brookfield is the company’s quarterly dividend. And that recurring cash flow helps to keep that dividend well-covered.

As of the time of writing, Brookfield offers a yield of 4.87%. The company has also provided annual increases to that payout over the years. In fact, Brookfield Infrastructure has delivered at least 5% annual distribution growth for 17 consecutive years.

The most recent increase was a 6% bump for 2026, and the company is targeting annual growth of that dividend to fall between 5% and 9%.

That fact alone makes this a dividend stock worth considering. A high yield that continues to grow is rare for a dividend stock.

That growth becomes even more important for investors in retirement. Over time, inflation can erode the purchasing power of a fixed-income stream. A dividend like Brookfield’s that continues to increase each year can help offset some of that impact while providing more income over time.

Perhaps most importantly, the payout still looks manageable. Brookfield Infrastructure reported a payout ratio of nearly 66% in its latest quarter. The long-term target set by the company is between 60% and 70%.

Why this 5% dividend stock could be the ultimate retirement hack

There’s no single investment that can meet every retirement need. That being said, BIPC does check off several important boxes for income-seeking investors.

First up is the dividend. The nearly 5% yield, coupled with a 17-year distribution-growth record and a plan for further increases, makes this a dividend stock that’s hard to ignore.

Then there’s the business. Brookfield’s essential infrastructure assets provide instant diversification across multiple industries and geographies. Even better, it does that while generating the cash needed to support that dividend.

In my opinion, Brookfield is an excellent long-term holding that should be a small part of any larger, well-diversified portfolio.

Buy it, hold it, and watch your income grow.