Donald Trump’s latest tariff threats have put Canadian infrastructure in the spotlight. At this crucial juncture, the country can’t afford to underinvest in energy, utilities, and transportation networks.
As an investor, you can get exposure to this essential theme—and even do your part in supporting it—through various stocks. But it’s not as simple as picking a single ticker. Infrastructure isn’t a sector in itself; it’s a mix of companies from different industries, all playing a role in keeping Canada running.
Here’s your five-minute guide to understanding this theme, plus an exchange-traded fund (ETF) that offers easy exposure with monthly dividends and a 14.67% yield.
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What is infrastructure?
Unlike traditional stock market sectors, infrastructure isn’t an official classification. Instead, this is my personal system for categorizing stocks that fit the theme. I divide infrastructure-related companies into four major sectors: utilities, energy, industrials, and communications.
Utilities
This category includes companies that generate and transmit power—both electricity and natural gas. I look at firms that operate in renewables, like wind and hydro, as well as traditional sources, such as natural gas and nuclear. Whether they produce energy, distribute it, or do both, they form the backbone of Canada’s infrastructure.
Energy
Here, I focus strictly on midstream assets, meaning companies that transport and store energy. Think pipelines moving oil and natural gas across the country. I exclude upstream (exploration and production) companies since they’re more tied to commodity price swings. I also leave out downstream (refining and retail fuel stations) because they don’t have the same long-term infrastructure characteristics.
Industrials
In Canada, the obvious infrastructure plays in this sector are railways and waste management. Railways are essential because they move goods and commodities across vast distances, keeping the economy running. Waste disposal, including garbage collection and landfill operations, is a less obvious but crucial part of infrastructure. Trash needs designated routes and permanent landfill sites—both of which resemble traditional infrastructure assets in their stability and importance.
Communications
This category often gets overlooked, but telecommunications companies absolutely belong in the infrastructure conversation. The networks that provide internet, mobile service, and fibre-optic connections are just as critical as roads and power lines in today’s digital economy.
By thinking about infrastructure this way, you can start identifying the key stocks that fit into the theme—without being misled by sector labels.
Buy them all with this ETF
That’s a lot to sift through—but the good news is you don’t have to. Hamilton Utilities Yield Maximizer ETF (TSX:UMAX) does all the heavy lifting for you.
UMAX holds 13 infrastructure-related stocks, all equally weighted, giving you broad exposure without having to pick individual winners.
The focus here is income first. UMAX sells at-the-money covered calls on 50% of the portfolio, trading some upside potential for high, consistent monthly income. That means you won’t see huge price appreciation, but you will collect hefty distributions.
Right now, UMAX is paying a 14.67% distribution yield—so you get paid to wait while Canadian infrastructure keeps chugging along.
