Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is one of the most well-known and respected asset managers on the planet, with decades of experiences managing nearly any type of asset conceivable. For those investors seeking a diversified growth machine that can provide some income, Brookfield may be the perfect addition to your portfolio.
Brookfield is a highly diversified investment
The importance of diversifying your portfolio is something that can’t be understated. Fortunately, investors who buy into Brookfield aren’t just buying into one of the largest asset managers on the planet, but are also taking part ownership into some of the most well-known and valuable pieces of real estate on the planet.
Brookfield’s sprawling portfolio of investments has $350 billion in assets spanning over 30 countries, including large sections of downtown Toronto, Sydney, and New York, as well as popular spots such as Canary Wharf in London and the Atlantis complex in the Bahamas.
This factor alone makes Brookfield an intriguing investment for would-be landlords and those looking to diversify their portfolio, but Brookfield offers much more in the form of its partnerships.
In short, Brookfield spun off successful verticals of its business over the years, forming partnerships in which Brookfield still maintains an interest and provides funding if needed, which are focused on various areas of the global market that include infrastructure, renewable energy, real estate, and private equity. The success of those partnerships provides a boost to Brookfield itself, thereby adding yet more appeal.
Brookfield continues to show strong growth
Among the many reasons to consider Brookfield is the fact that the company can identify and acquire distressed assets around the world with such efficiency is something that is often overlooked by investors. Apart from identifying those assets, it also helps that Brookfield has a massive war chest on the ready to acquire those assets when the opportune moment arises. One such example was the US$48.8 billion acquisition of Oaktree Capital Management announced earlier in the year.
In terms of results, Brookfield announced results for the first fiscal of 2019 recently that showcased gains across the trailing 12-month period when compared to the same period last year. Specifically, net income came in at US$6,889 million, or US$3.18 per share for the previous 12-month period, thereby surpassing the US$5,888 million, or US$2.26 per share reported in the prior year.
Brookfield also offers investors a quarterly dividend that currently yields just over 1%. The more important point to take note of, however, is that the payout is well covered and Brookfield has provided a series of hikes to that dividend, which aren’t going to end anytime soon. Throw in a five-year compound annual growth rate of 15% for its assets under management and liquidity of US$36 billion and you have the perfect long-term investment for nearly any portfolio.
When you buy heavily cyclical stocks at low prices… and then hold the shares until the cycle reaches its peak… you can make a very healthy profit.
Every investor knows that. But many struggle to identify the best opportunities.
Except The Motley Fool may have a plan to solve that problem! Our in-house analyst team has poured thousands of hours into their proprietary research – and this is the result.
Our top advisor Iain Butler has just identified his #1 stock to buy in 2019 (and beyond).
Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool owns shares of Brookfield Asset Management and BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.