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Uncovering Two Potential Top-Performers for Investment in 2025

Two Exceptional Shares to Invest in for 2025's Market
Two Exceptional Shares to Invest in for 2025's Market

Uncovering Two Potential Top-Performers for Investment in 2025

It's no secret that keeping New Year's resolutions can be challenging. Whether it's hitting the gym or boosting your investment portfolio, it's easy to slide back into old habits by mid-January. But fear not, as Fool.com has got your back. Two of their contributors have identified two smart additions to your portfolio right now: 3M and Brookfield Infrastructure.

3M: A New Leaf

Lee Samaha, a Fool.com contributor, sees significantly upside potential for 3M (MMM 1.33%). Despite the uncertain global growth environment, Samaha believes 3M's potential to improve margins and earnings through CEO Bill Brown's restructuring plan is the key to the investment case.

Brown's far-reaching plan includes returning the company to its traditional strength of developing innovative product introductions through research and development, enhancing machinery asset utilization, on-time in full deliveries to customers, improving inventory turnover, consolidating suppliers, and implementing lean management techniques.

Those issues that previously hindered 3M, like the multi-year payments over the PFAS chemicals and allegedly faulty combat arms earplugs litigation, are now under control. With clearance, 3M can focus on its self-help initiatives to drive margin expansion and earnings growth.

Brookfield Infrastructure: Building a Better Passive Income Stream

Scott Levine, another Fool.com contributor, recommends income investors take a look at Brookfield Infrastructure (BIP 0.97%). Despite the S&P 500's impressive 23% gain in 2024, Brookfield Infrastructure didn't keep pace, with a measly 1% increase. In fact, it's dipped about 2% since the start of 2025.

Brookfield Infrastructure operates a diverse portfolio of infrastructure assets, with transportation accounting for about 42% of the company's funds from operation (FFO). Midstream, utilities, and data assets make up the remaining percentage.

Management has excelled in growing value from these assets over the past 15 years, with an impressive 15% compound annual growth rate in FFO from 2009 to 2023. The company targets consistent annual distribution growth of 5% to 9% for the foreseeable future, making it an appealing choice for income investors.

It's Your Turn

Individual investing goals will undoubtedly vary. If you're looking for a resilient industrial conglomerate with the capacity for notable earnings growth, give 3M a shot. For income investors, consider Brookfield Infrastructure, especially if you're eyeing an attractive valuation.

In the realm of finance and investing, contributing writer Lee Samaha suggests that 3M, with its potential for improved margins and earnings due to CEO Bill Brown's restructuring plan, could be a wise addition to an investment portfolio. On the other hand, for those focusing on passive income, Scott Levine recommends considering Brookfield Infrastructure, a company that has consistently grown its FFO over the past 15 years and aims for annual distribution growth of 5% to 9%.

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