Should You Buy Brookfield Asset Management While It's Below $60?

Published: Sunday, August 24, 2025 at 3:32 pm

Brookfield Asset Management: Still a Buy Despite Recent Gains?

Shares of Brookfield Asset Management have seen a significant rise, increasing over 40% in the past year, outpacing the S&P 500's gains. This surge reflects investor optimism regarding the Canadian asset manager's future prospects. The company, which manages investments on behalf of others and itself, is currently trading around $60 per share.

Brookfield Asset Management's core business revolves around fee-bearing capital, the funds it manages for clients. The amount of this capital directly impacts the company's revenue and earnings. While historically focused on infrastructure, the company now operates across five investment categories: renewable power, infrastructure, real estate, private equity, and credit. This diversification allows Brookfield to capitalize on global trends like digitization, decarbonization, and deglobalization. The company has a global presence, operating in over 30 countries and managing approximately $1 trillion in assets, with roughly $550 billion in fee-bearing capital.

The company has ambitious growth plans, aiming to double its fee-bearing capital to around $1.1 trillion by the end of the decade. This expansion is projected to drive a 17% annual increase in fee-bearing earnings between 2024 and 2029. This growth strategy is expected to support continued dividend increases, with a 15% rise per share already implemented at the start of 2025. This would roughly double the dividend in about five years.

Compared to competitors like Blackstone and BlackRock, Brookfield Asset Management's dividend yield appears attractive, suggesting its valuation may not be excessive. The company's long history in the asset management industry provides a foundation for confidence in its ability to execute its growth strategy.

BNN's Perspective:

While the recent price increase is noteworthy, Brookfield Asset Management's growth potential, particularly its dividend strategy, remains compelling. The company's diversified investment approach and global reach position it well to capitalize on emerging market trends. However, investors should closely monitor the company's execution of its growth plan, as its success is crucial to achieving its financial targets.

Keywords: Brookfield Asset Management, BAM, asset management, fee-bearing capital, dividend, investment, growth, infrastructure, renewable power, real estate, private equity, credit, digitization, decarbonization, deglobalization, Blackstone, BlackRock

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