Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is one of the most successful alternative asset managers in the world. The firm is now in charge of more than $500 billion in assets.
For long-term TFSA investors, Brookfield has created several exciting options. Each business, which it co-owns and helps manage, focuses on multi-decade opportunities that can generate consistent wealth for shareholders. Many also offer industry-leading dividend yields.
If you want to generate permanent income, look no further than the following picks.
Bet on the future
Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) is building a business that should last for another century or more. It also throws off a ton of cash.
As its name suggests, Brookfield Renewable is focused on developing renewable energy projects. With $50 billion in assets across 15 countries, it’s already one of the largest operators in the world. But the best is yet to come. According to management, “growth of renewables will be larger than anyone expected.”
Over the last five years, $1.5 trillion has been invested in new renewable generation. Over the next decade, as much as $10 trillion in additional capital will be deployed, which should give Brookfield near-infinite avenues for growth.
Most of its projects are tied to long-term contracts, meaning that cash flows are a near guarantee. That’s good news for the stock’s 4.4% dividend.
Shoot fish in a barrel
“I like to go for cinches,” says Warren Buffett. “I like to shoot fish in a barrel. But I like to do it after the water has run out.”
When it comes to high probability bets, it doesn’t get much better than Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP).
Brookfield Infrastructure owns infrastructure assets like highways, ports, railroads, and energy facilities. These assets directly benefit from one of the most reliable growth markets in history: population growth.
As populations rise, more demand is placed on transportation networks and energy generation projects. Brookfield’s assets are primed to take advantage.
As with Brookfield Renewables, Brookfield Infrastructure throws off a ton of cash, fuelling a 2.6% dividend yield. The United Nations expects global growth to continue for another 80 years, so that payout has plenty of room to run.
Brookfield Property Partners L.P. (TSX:BPY.UN)(NASDAQ:BPY) is yet another Brookfield offshoot benefiting from a massive opportunity: real estate.
Brookfield Property is about as diversified as its gets. The company has billions invested across a dozen countries, including Canada, the U.S., China, India, Australia, Brazil, and the U.K. Around 40% of its properties are offices, with another 40% constituting retail space. The remainder is a mix of sources, like self-storage, hospitality, and student housing.
Real estate tenants need to regularly service their lease payments, meaning that Brookfield Property has enough cash flow to generate a 5.1% dividend yield.
Over the next five years, management is targeting 9% annual total returns for shareholders. That’s not breaking any records, but it would be an attractive outcome for such a high-quality, risk-mitigated stock.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV, BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, and Brookfield Property Partners LP.
Fool contributor Ryan Vanzo has no position in any stocks mentioned.