Infrastructure Stocks to Buy: Blackstone (BX)
Infrastructure Stocks to Buy: Blackstone (BX)A stuffy New-York-based private equity company might seem an odd addition to a list of infrastructure stocks. But Blackstone Group LP (NYSE:BX) is about to make a major splash into infrastructure investment.
Earlier this month, the company announced it is “laying the groundwork” on a new infrastructure unit that would invest in projects like toll roads and bridges.
And seeing as how the investments would be for-profit, Blackstone wouldn’t necessarily need speedy action from the Trump Administration or Congress on an infrastructure plan.
Blackstone pays a dividend (technically a distribution) that varies with profitability, which can be a little off-putting to investors who are used to a consistent quarterly payout. But when times are good for Blackstone, they tend to be great.
If Trump is successful in pushing through corporate tax reform, that could be a major boon to private equity companies like Blackstone, most of which are currently organized as limited partnerships.
A lower tax corporate tax rate would make the tax savings from organizing as an limited partnership less compelling and might persuade them to reorganize as corporations (Kinder Morgan did this a few years ago).
That would make the private equity companies easier to understand and would eliminate the UBTI issues that can affect tax-exempt holders such as IRA plans.
Source: Investor Place