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Top 10 Infrastructure Stocks to Watch in 2025

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Top 10 Infrastructure Stocks to Watch in 2025

The infrastructure sector is essential to global economic development, encompassing key industries like transportation, energy, telecommunications, and utilities. As governments ramp up their investments in major infrastructure projects in the coming years, the demand for infrastructure stocks is expected to soar, making them a solid investment opportunity in 2025.

This article highlights the top 10 infrastructure stocks to keep on your radar, covering their stock prices, industry focus, and what makes them standout picks for future growth.

Why Infrastructure Stocks Are a Strong Choice in 2025

As we approach 2025, the infrastructure sector is poised for significant growth. Governments and private companies around the world are ramping up investments in infrastructure to meet the demands of a growing population, embrace technological innovations, and facilitate the global shift to renewable energy.

These investments, often backed by long-term projects, promise steady and reliable returns, making infrastructure stocks particularly attractive to investors seeking long-term stability. Additionally, the increasing focus on sustainability and decarbonization is further fueling demand for infrastructure that supports clean energy, smarter grids, and more efficient transportation systems.

10 Best Infrastructure Stocks in 2025:

Brookfield Infrastructure Partners (BIP)

  • Stock Price: $33.88 (as of March 2025)
  • Sectors: Utilities, Energy Infrastructure, Transportation, Telecommunications

Brookfield Infrastructure Partners (BIP) is a global leader in infrastructure investment. The company has a diverse portfolio that spans across utilities, energy, transportation, and telecommunications. As a go-to choice for investors seeking reliable income and long-term stability, BIP offers consistent cash flows and a robust dividend yield. Brookfield’s global presence in North America, Europe, and Australia allows it to capitalize on a broad range of infrastructure opportunities.

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BIP’s key sectors include:

  • Energy Infrastructure: Natural gas pipelines, storage, and processing.
  • Transportation: Ports, railroads, and toll roads.
  • Utilities: Power generation and distribution.
  • Telecommunications: Data centers and broadband networks.

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Brookfield’s strong position in these industries makes it one of the best infrastructure stocks to consider in 2025.

NextEra Energy (NEE)

  • Stock Price: $80.15 (as of March 2025)
  • Sectors: Utilities, Renewable Energy

NextEra Energy is a major player in the renewable energy infrastructure space. As the world shifts towards cleaner energy, the company has built an impressive portfolio of wind and solar energy assets. NextEra’s focus on reducing carbon emissions aligns it with the growing global demand for sustainable energy solutions. The company is positioned for solid growth as renewable energy and infrastructure investments continue to rise.

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NextEra’s focus areas are:

  • Renewable Energy: Wind and solar power generation.
  • Electricity Transmission: Infrastructure for efficient power transmission.

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As global demand for clean energy increases, NextEra Energy is set to become one of the best infrastructure stocks for 2025.

Caterpillar Inc. (CAT)

  • Stock Price: $228.60 (as of March 2025)
  • Sectors: Industrial Equipment, Construction, Engineering

Caterpillar Inc. is a leader in manufacturing heavy machinery used in infrastructure projects. As global construction and infrastructure activities increase, Caterpillar stands to benefit from the surge in demand for its equipment. From road construction to power plants, Caterpillar’s diverse product range makes it essential to the development of critical infrastructure.

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Key sectors for Caterpillar include:

  • Construction: Equipment for building roads, bridges, and urban infrastructure.
  • Mining: Machinery for extracting materials needed for infrastructure.
  • Energy: Power generation machinery and technology.

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Caterpillar’s wide-reaching influence and critical role in infrastructure projects make it a top contender among the best infrastructure stocks in 2025.

American Tower (AMT)

  • Stock Price: $232.75 (as of March 2025)
  • Sectors: Telecommunications, Infrastructure Real Estate

American Tower is at the forefront of telecommunications infrastructure, with a focus on owning and operating cell towers and data centers. As the world moves towards 5G networks and increased mobile data usage, American Tower stands to benefit from the growing demand for better connectivity.

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American Tower’s portfolio includes:

  • Telecommunication Towers: Infrastructure for wireless mobile networks, including 5G towers.
  • Data Centers: Facilities that manage and store data for cloud and telecommunications services.

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With the global push for improved wireless connectivity, American Tower is a leading choice for investors seeking exposure to telecommunications infrastructure stocks.

Union Pacific Corporation (UNP)

  • Stock Price: $235.48 (as of March 2025)
  • Sectors: Transportation, Railroads

Union Pacific is one of the largest freight railroad operators in North America. The company plays a crucial role in the transportation infrastructure sector, managing a vast network of railroads that carry goods across the U.S. As freight demand continues to rise, Union Pacific’s extensive rail network positions it for continued growth and profitability.

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Union Pacific’s focus areas include:

  • Railroads: 32,000 miles of track essential for transporting goods.
  • Logistics: Connecting warehouses, ports, and manufacturing hubs across the U.S.

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Union Pacific’s investment in modernizing its rail network makes it one of the top infrastructure stocks to hold for the long term.

Vanguard Infrastructure ETF (VIGI)

  • Stock Price: $79.13 (as of March 2025)
  • Sectors: Infrastructure ETFs, Utilities, Energy, Telecommunications

For investors looking for broad exposure to the best infrastructure stocks, the Vanguard Infrastructure ETF (VIGI) is an excellent option. This exchange-traded fund offers diversified access to infrastructure companies across multiple sectors, including energy, utilities, telecommunications, and transportation. The ETF allows investors to spread risk while benefiting from the growth of the infrastructure sector.

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VIGI’s diverse holdings include:

  • Utilities: Companies that manage water, electricity, and gas distribution.
  • Energy: Firms involved in energy transmission and production.
  • Telecommunications: Companies developing communication networks.

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VIGI is a smart pick for those seeking lower risk and access to a variety of infrastructure stocks.

BlackRock Infrastructure and Real Assets (BIRAX)

  • Stock Price: $22.45 (as of March 2025)
  • Sectors: Real Assets, Utilities, Renewable Energy, Infrastructure

BlackRock’s Infrastructure and Real Assets (BIRAX) fund offers exposure to a diversified range of infrastructure stocks. The fund invests in both traditional energy infrastructure and emerging renewable energy projects. BlackRock’s global presence and diversified approach make BIRAX a solid choice for long-term infrastructure investors.

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Key sectors for BIRAX include:

  • Renewable Energy: Wind and solar energy projects.
  • Utilities: Water and electricity distribution systems.
  • Transportation: Airports, toll roads, and rail systems.

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BIRAX is a standout fund that provides access to an array of top infrastructure stocks and offers diversified exposure to global infrastructure markets.

Xcel Energy (XEL)

  • Stock Price: $64.30 (as of March 2025)
  • Sectors: Utilities, Renewable Energy

Xcel Energy is a prominent utility company focused on renewable energy generation. With a strong presence in wind and solar energy, Xcel is investing heavily in sustainable energy infrastructure. The company’s long-term strategy of reducing carbon emissions positions it as a leader in the transition to cleaner energy.

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Xcel Energy’s infrastructure focus includes:

  • Renewable Energy: Wind and solar power generation.
  • Utility Infrastructure: Electricity transmission and distribution systems.

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Xcel Energy’s commitment to both sustainable energy and infrastructure development makes it one of the best infrastructure stocks for 2025.

Enbridge Inc. (ENB)

  • Stock Price: $42.79 (as of March 2025)
  • Sectors: Energy Infrastructure, Oil & Gas Pipelines

Enbridge is a major energy infrastructure company, particularly known for its network of oil and gas pipelines. The company also invests in renewable energy and utility infrastructure, including solar, wind, and geothermal projects. With its steady cash flow from pipeline operations, Enbridge is an attractive option for long-term investors.

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Enbridge’s key sectors include:

  • Energy Pipelines: Transportation of oil and natural gas.
  • Renewable Energy: Solar and wind projects.
  • Utilities: Gas distribution and power transmission.

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Enbridge’s diversified energy holdings make it a reliable pick for investors seeking stable returns in the energy infrastructure sector.

Southern Company (SO)

  • Stock Price: $67.95 (as of March 2025)
  • Sectors: Utilities, Energy Infrastructure

Southern Company is a major utility provider in the U.S., focusing on electricity and natural gas distribution. The company has also made significant investments in clean energy projects, including nuclear, wind, and solar power. As the U.S. shifts toward more sustainable energy sources, Southern Company is well-positioned to capitalize on these trends.

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Southern Company’s infrastructure focus includes:

  • Electricity Distribution: Power generation and distribution networks in the Southeastern U.S.
  • Natural Gas: Gas transmission and distribution infrastructure.
  • Renewable Energy: Wind and solar energy projects.

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Southern Company’s leadership in energy infrastructure, both traditional and renewable, makes it a strong candidate among the best infrastructure stocks for 2025.

Key Benefits of Investing in Infrastructure Stocks

Consistent Returns

Infrastructure companies are known for generating reliable cash flows, often due to long-term contracts or assets that are heavily regulated. This provides a predictable income stream, which appeals to those seeking stable returns over time.

Inflation Protection

Infrastructure assets tend to be resistant to inflation because of their ability to adjust prices in response to rising costs. Many infrastructure firms can increase their rates to keep up with inflation, helping investors maintain their purchasing power.

Portfolio Diversification

Investing in infrastructure stocks provides exposure to various sectors, including energy, utilities, and telecommunications. This diversification can reduce overall portfolio risk and help balance potential volatility in other areas of the market.

Focus on Sustainability

With an increasing emphasis on renewable energy and sustainable practices, many infrastructure companies are aligning their projects with global efforts to reduce carbon emissions. This focus on clean energy infrastructure opens up growth opportunities for investors looking to tap into the future of sustainable development.

Read also: AI Category Rises After Trump Signs US$500 Billion AI Infrastructure Investment Project

Conclusion

The infrastructure sector is primed for growth in 2025, with substantial investments pouring into energy, transportation, telecommunications, and utilities. Whether you choose to invest in individual infrastructure stocks or diversify through ETFs and funds, the top 10 infrastructure stocks listed above offer great opportunities for long-term growth. By focusing on companies with diversified portfolios and an innovative approach to infrastructure development, you can position yourself to benefit from this dynamic and evolving sector in the years ahead.

FAQ


Is now a good time to invest in infrastructure?

With interest rates starting to decline, now may be a good time to consider investing in infrastructure, particularly in sectors linked to AI, such as data centers and the power needed to support them.


Does infrastructure do well in a recession?

Yes, when an economy is in recession or slowing, and unemployment is high, government spending on infrastructure can directly reduce unemployment and have a strong multiplier effect on the broader economy.


Is infrastructure a good inflation hedge?

Private infrastructure offers several layers of protection against inflation and volatility, with its tangible underlying assets, which, like all real assets, typically retain their value or even appreciate during periods of high inflation.


Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a professional before making any investment decisions. Stock investments involve risk, and you should only invest what you can afford to lose.

Amelia, a UK-educated corporate finance analyst with over three years in SEO and finance blogging, excels in creating insightful financial and lifestyle content. Her academic prowess blends with a passion for travel, enriching her writing with diverse cultural experiences, particularly during her year-end explorations.
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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making investment decisions.