Valued at a market cap of $127 billion, Brookfield Asset Management (TSX:BAM) is among the largest companies in Canada. Brookfield Asset Management is a leading global alternative asset manager headquartered with over US$1 trillion in assets under management across renewable power, infrastructure, private equity, real estate, and credit.
It manages public and private investment products for institutional and retail clients, earning asset management income while investing alongside clients to align interests.
BAM stock went public in late 2022 and has since returned more than 90% to shareholders in dividend-adjusted gains. Given its quarterly dividend of US$0.438 per share, it offers shareholders a forward yield of over 3%. Let’s see if you should own this TSX dividend stock right now.
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Is this TSX a good buy?
Brookfield Asset Management reported exceptional first-quarter results, marking its highest quarterly earnings growth since becoming a standalone public company. Despite a volatile macro environment, the global alternative asset manager demonstrated resilience and strategic execution across its diversified platform.
Its fee-related earnings (FRE) surged 26% to a record US$698 million, or US$0.43 per share, while distributable earnings increased 20% to US$654 million, or US$0.40 per share in the first quarter (Q1) of 2025.
This performance was driven by fee-bearing capital growth of 20% over the past year, which soared to US$549 billion. The company raised an impressive US$25 billion in new capital during the quarter, bringing total inflows to over US$140 billion in the past year.
Brookfield deployed US$16 billion across attractive opportunities while generating approximately US$10 billion through strategic monetizations. Notable transactions included the completion of the privatization of renewable energy developer Neoen and securing a €20 billion commitment to artificial intelligence (AI) infrastructure alongside the French government. It also announced plans to acquire Colonial Pipeline, the largest refined products pipeline in the U.S., for an enterprise value of US$9 billion.
BAM’s diversified global footprint spanning over 30 countries provides it with flexibility during uncertain times. Approximately 95% of fee-related revenues derive from long-term or perpetual capital, creating stable cash flows.
Brookfield’s focus on essential assets, which include power, infrastructure, real estate, and critical business services, offers natural insulation from trade disruptions, as most assets serve domestic markets with inflation-linked revenues.
Brookfield continued expanding its credit capabilities, now managing over US$320 billion in credit assets under management. It also announced an agreement to acquire a majority stake in Angel Oak, enhancing its U.S. mortgage credit capabilities and increasing its ownership in Oaktree to 74%.
Is the TSX dividend stock undervalued?
Following a successful US$750 million bond offering in April, Brookfield maintains US$2.1 billion in available liquidity with the capacity to raise over US$4 billion in additional debt capital. It repurchased over two million shares during the quarter, which showcases confidence in its growth trajectory.
With nearly US$120 billion in uncalled capital and a proven ability to navigate volatile environments, Brookfield appears well-positioned to capitalize on market dislocations while continuing to deliver value to shareholders through its targeted +90% dividend-payout ratio strategy.
Brookfield targets doubling its business size over five years, growing fee-bearing capital to approximately US$1 trillion. The firm maintains a capital-light structure with zero debt and US$2 billion in cash.
Analysts tracking the TSX stock expect adjusted earnings to increase from US$1.45 per share in 2024 to US$ 2.20 per share in 2029. If BAM stock is priced at 30 times forward earnings, which is reasonable given its growth estimates and dividend, it should trade around US$66 in early 2027, above the current trading price of US$57.
