Dalrymple Bay Infrastructure (ASX:DBI) remains one of the most cash-flow stable infrastructure businesses with consumer price index-linked earnings, predictable take-or-pay contracts, and an attractive dividend yield despite a recent share price pullback, Jefferies said in a Thursday note.

Jefferies noted that the company's contracts ensure highly predictable cash flows, as take-or-pay agreements require users to pay for reserved capacity regardless of throughput, and the absence of force majeure clauses further minimizes earnings risk during disruptions.

The investment firm highlighted that the company's coal terminal throughput will be driven by Queensland coal growth, with existing Goonyella system mines adding around 8.8 million tonnes per annum (Mtpa) of coal capacity by 2032, and new mines potentially contributing another 10.9 Mtpa.

The investment firm said that dividend income remains a major draw, with the company raising its 2025 to 2026 dividend guidance to AU$0.26375 per share from AU$0.245, signaling 7.7% growth and a yield of about 5.6%.

The investment firm added that the company plans about AU$429.6 million in non-expansionary capital expenditure through 2027, with similar potential from 2028 to 2031, supporting regulated returns and earnings growth.

Jefferies lifted its rating on Dalrymple Bay to buy from hold, with a price target of AU$5.24.