Brookfield Corp (TSX:BN) is a stock that I’ve owned for close to two years. I first started buying it when it entered a bear market in 2023; I’ve added to the position a few times since then. The stock has worked out pretty well for me over the years, and I plan to buy more of it when suitable. In fact, I am considering an additional $10,000 investment in Brookfield stock in the remaining days of April. In this article, I’ll explain why I’m considering this investment and why I consider BN stock to be a good place in which to deploy capital in 2025.
High growth
One quality that Brookfield has in spades–or has had in recent quarters in recent quarters anyway — is growth. In the trailing 12-month period, the company grew its free cash flow (FCF) by 73%, and its last few quarters saw considerable growth in distributable earnings (DE) as well. For example, in its most recent quarter, BN’s DE per share grew 21.6% from $0.83 to $1.01. If you look at recent earnings releases, you might notice that earnings per share (EPS) have fallen off a bit over the last few years, but that’s mostly due to the fact that Brookfield spun off 25% of its Brookfield Asset Management stake to investors in 2022. After adjusting for that spinoff, the performance over the long term has been good as well.
Focus on important sectors
Another thing about Brookfield that is appealing is the fact that it focuses on strategically important sectors that governments around the world are trying to incentivize:
- Infrastructure
- Renewable energy
- Real estate
Because these sectors are so in vogue and are being promoted by governments, they attract a lot of investment from said governments (e.g., pension funds and sovereign wealth funds). Additionally, companies in these industries — like the ones that Brookfield runs — often benefit from tax breaks and other incentives. Many countries offer tax breaks to companies building new renewable energy infrastructure, for example.
Quality leadership
Another factor that Brookfield has going for it is competent and high-quality leadership. The company’s chief executive officer, Bruce Flatt, has stood the test of time, having compounded Brookfield’s book value and its stock price at above-average rates over more than 20 years. Past results don’t predict future results, but Flatt still has the traits that made him successful in the first place (i.e., adeptness at raising money and managing leverage). So, the company has a good shot at succeeding during the remainder of Flatt’s tenure. Also, the heir apparent, Conor Teskey, has a lot of experience and a visible passion for his job, so he may do well, too.
Foolish takeaway
After looking at all the advantages I’ve listed in this article and considering the company’s current stock price, I’m convinced that BN stock is a pretty good buy in April 2025. As for the “stock price” part, see my previous Brookfield articles for the valuation factors that I didn’t explore in any depth in this article. I am looking to deploy up to $10,000 into stocks during the remainder of this month, and Brookfield is a top consideration on my list.
