Which Brookfield Stock Should You Buy?

Brookfield stocks are popular these days, but of the top three for consideration, which is the best on the TSX today?

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Some of the most popular stocks out there fall under the Brookfield Asset Management (TSX:BAM) banner, and it’s clear to see why. These companies offer a wide range of investments, each with its own focus that allows investors to gain exposure to real estate all around the world.

But which is the best of the batch? Today, I’m going to look at the top three and give my own recommendation.

The big wig

First, there’s the big wig itself: BAM. BAM stock is a strong choice, as its the head of all the rest. The company has been around since the 1800s (yes, really) growing in that time to create a wide range of real estate properties from hotels and offices to energy properties.

It’s this exposure to the wide array of industries that investors and analysts alike admire. The company can give you growth from several industries rather than one. This makes it like owning an entire portfolio of real estate under one ticker!

And given its track record, BAM stock is a strong option for returns, though it recently changed its ticker on the TSX from BAM.A, the company itself has decades of historical growth to look back on. The only major downside is that BAM stock does not offer a dividend at this time for investors, but that could change shortly since it recently re-entered the market.

The solid choice

Now, if you want security, another great option is Brookfield Infrastructure Partners (TSX:BIP.UN). Infrastructure will always be needed, and it comes in many forms. It could be infrastructure for railways or for utilities. In any case, BIP stock offers exposure to those sectors. And gain, that exposure is around the world!

The only problem? Others have figured out the value of this company, making it quite unvaluable at the current moment. BIP stock trades now at about 123 times earnings, making it quite expensive at this time. Does that mean you shouldn’t buy it? Of course not — especially if you’re looking for a long-term option. But it could take a while for shares to climb should investors sell after a potential recession.

Even so, you can also grab a 4.41% dividend at this time from BIP stock. So, I would not say it’s worthless, even at these high prices.

A growth option

Finally, Brookfield Renewable Partners (TSX:BEP.UN), is great for those wanting exposure to the growing sector of clean energy while also receiving a dividend. BEP stock is solid, as it too has decades of growth behind it, investing in practically every single type of renewable energy. Whether its nuclear power or solar, you can practically guarantee BEP stock has it.

This exposure is going to prove worthwhile in the next decade, as the clean energy transition continues. Plus, it provides the benefit of already being in this arena, whereas BIP and BAM stock will have to trade off their investments in oil and gas for clean energy or something else.

Finally, BEP stock is far more valuable, trading at just 1.66 times book value, with a forward price-to-earnings ratio of 149.25, meaning analysts expect it to explode in the coming year. Finally, you can grab the highest yield of the bunch at 4.65%.

So, I think you can see that in my opinion, BEP stock is the best choice among the Brookfield stocks. While the others are still strong long-term options I would certainly not ignore, BEP stock is the best out there today.

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.

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Asset Management, Brookfield Infrastructure Partners, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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