The Motley Fool

Brookfield Asset Management Inc. Is a Great Investment

Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE:BAM) is the largest alternative asset manager in the country. The company, which has been in business for over 100 years, employs 30,000 people and manages over $200 billion in assets.

Brookfield’s portfolio of investments spans across North and South America, Australasia, and Europe. The primary focus for the company is on real estate, renewable energy, private equity, and infrastructure.  The largest investment platform consists of multi-family, office, retail, hotel, and industrial sector-specific profiles.

Let’s take a look at a few reasons why you should consider adding Brookfield to your portfolio.

Brookfield knows when and where to buy

One advantage of being an asset management company the size of Brookfield is the sheer amount of capital that is available for investment in new opportunities. With US$10 billion ready to invest when those opportunities arise, there is a serious competitive advantage over competitors vying for the same acquisition targets.

Complement the financial clout with Brookfield’s ability to come in at the right time to acquire distressed assets, and you have a unique mixture of business timing and financial muscle that few can match.

Earlier this year Brookfield acquired Associated Estates Corporation in a deal worth approximately $2.5 billion.  Brookfield is also looking to invest into distressed assets in Brazil, which have been hit hard by falling prices and a lack of credit. That investment could cost in excess of $1 billion.

With more deals on the horizon, Brookfield will continue growing.

Brookfield’s results show promise

Brookfield has had an impressive run of results that would make nearly any investor happy. The stock currently trades at $45, which is just short of the 52-week high of $48.64. Year-to-date, the stock is up an impressive 17.64%, and over the course of a full year the stock is up 51%. Long-term investors will rejoice in learning that the five-year change is 165%, making this an excellent opportunity.

Brookfield pays a quarterly dividend of $0.15, which has steadily increased over the past year. In the most recent quarter, Brookfield reported earnings of $0.727 per share, exceeding both the forecasted figure for the quarter and the same quarter results for the previous year by 36%.

Investors and analysts have taken note of this. Analysts have applied a buy rating on the stock, with price targets nearing $50.

In my opinion, the strong balance sheet, solid results, and the record of acquisitions make Brookfield a great addition to any portfolio. If you are an investor seeking both long-term growth prospects and dividends, you should add Brookfield to your portfolio.

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Fool contributor Demetris Afxentiou has no position in any stocks mentioned. The Motley Fool owns shares of BROOKFIELD ASSET MANAGEMENT INC. CL.A LV. Brookfield Asset Management is owned by the Motley Fool Pro Canada.

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