The Only Canadian Stock You’ll Need to Buy and Hold Forever

Brookfield Asset Management is as close to a forever stock as you’ll find, especially if you buy shares on meaningful pullbacks.

| More on:
diversification and asset allocation are crucial investing concepts

Source: Getty Images

If you could only own one Canadian stock for the rest of your life, Brookfield Asset Management (TSX:BAM) should be at the top of your list. While no investor should ever truly go all-in on a single equity, BAM makes a compelling case as the ultimate long-term compounder — a stock to buy on dips and hold for a long time.

A proven compounder with global reach

Brookfield Asset Management has delivered a stunning 45% total return over the past 12 months, reminding investors why it’s often seen as one of the best-run asset managers in the world. Even though such explosive returns aren’t sustainable every year, the company’s long-term growth runway is firmly intact.

This year, the growth stock experienced a significant pullback — sliding more than 30% from its peak of about $85 to a low of about $58. This drop was largely tied to macro-level uncertainty, particularly around tariffs and trade policy. However, what happened next was telling: BAM rebounded within months, showcasing the underlying strength and quality of the business.

Since BAM was spun off from its parent company in late 2022, the stock has nearly doubled investors’ money.

An asset-light giant with a trillion-dollar scale

Brookfield Asset Management isn’t your typical Canadian company. It’s a leading global alternative asset manager, overseeing more than US$1 trillion in assets under management (AUM). These assets span multiple high-value sectors, including renewable power, infrastructure, private equity, real estate, and credit. Notably, half of its AUM is fee-bearing, generating stable, recurring cash flow through management and performance fees.

What sets BAM apart is its capital-light business model. With minimal debt, ample liquidity, and robust cash flow from fees, the company is uniquely positioned to scale. It doesn’t need to stretch its balance sheet to grow, which gives it resilience in down markets and leverage in up cycles.

BAM also benefits from a powerful ecosystem through its close relationship with Brookfield Corporation. This wider network operates across +30 countries and over 300 businesses, giving BAM unrivalled insight into global trends, value opportunities, and emerging themes.

Unlike many asset managers who are passive investors, Brookfield is both an owner and operator, actively improving the assets it owns, which further boosts returns over time.

Positioned for long-term outperformance

The global shift toward alternative assets — like infrastructure, renewables, and private equity — plays right into Brookfield’s hands. Institutional investors are expected to increase their allocations to these strategies, and BAM is already one of the top choices to manage that capital.

Management projects that the firm’s AUM could double over the next five years, which implies a double-digit annual growth rate. That kind of growth not only supports higher earnings but also a rising dividend, making the stock a compelling choice for both income and capital appreciation.

After a 22% rally in just the last three months, the stock may appear fully valued in the short term. But long-term investors shouldn’t be discouraged. Instead, they should stay patient and look for opportunities to accumulate shares during meaningful market corrections. BAM’s track record, scale, and strategy make it a rare find — a stock you can buy, hold, and forget (almost).

Investor takeaway

If you’re seeking a Canadian stock to anchor your portfolio for life, Brookfield Asset Management is as close to a forever stock as you’ll find, especially if you buy shares on meaningful pullbacks.

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

This 7% Dividend Giant Could Be the Ultimate Retirement Ally

SmartCentres’ 7% monthly payout could anchor a TFSA, but only if you’re comfortable with tight payout coverage.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

The Best $10,000 TFSA Approach for Canadian Investors

A $10,000 TFSA can start compounding into real income later, if you pick durable growers and reinvest patiently.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

A $500 TFSA start can still buy three proven Canadian dividend payers, and the habit of reinvesting can do the…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Earn $200/Month in Passive Income That the CRA Can’t Tax

Wondering how to boost your monthly passive income. Here's how you can earn an extra $200/month completely tax free!

Read more »

A woman stands on an apartment balcony in a city
Dividend Stocks

A 4.4% Dividend Stock Paying Cash Every Month

Killam’s monthly TFSA payout is built on a simple idea: Canadians always need a place to live.

Read more »

Start line on the highway
Dividend Stocks

The 3 Stocks I’d Buy and Hold Into 2026

A smart 2026 Canadian buy-and-hold plan could be as simple as owning three durability styles: steady operator, quality compounder, and…

Read more »

diversification is an important part of building a stable portfolio
Dividend Stocks

Invest $10,000 in This Dividend Stock for $566 in Passive Income

PMZ.UN could turn a $10,000 TFSA into a steady monthly payout, as long as mall occupancy holds up.

Read more »

a person watches stock market trades
Dividend Stocks

Got 300? These 3 TSX Stocks Are Too Cheap to Ignore

Even $300 in three TSX stocks can kickstart compounding and teach you how to hold through volatility.

Read more »