Pick infrastructure for lower volatility, higher payouts – EDHEC
Privately held infrastructure firms exchibit lower revenue volatility, higher payouts and less correlation to the business cycle, according to the findings of research by Edhec Instrastructure Institute-Singapore (EDHECinfra).
The conclusion comes after testing related infrastructure firms’ business models, and their equity payout behaviour, based on the collection of data going back 15 years, including cashflows of more than 330 UK infrastructure firms.
Dr Frédéric Blanc-Brude, director of EDHECinfra, said: “The significant difference of revenue volatility between infrastructure and non-infrastructure firms, strongly suggest that infrastructure firms are in a league of their own when it comes to both their business model and their dividend payout behaviour.”
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