Think it’s too late to buy Brookfield Asset Management (TSX:BAM)? The Canadian stock has had a strong run, climbing more than 50% in the past year, and trading just off fresh highs. But the story here isn’t about catching up to what’s already happened. It’s about where BAM is heading, and the latest results show why there’s still time to ride this wave.
About BAM
Brookfield isn’t your typical asset manager. With more than $1 trillion (with a T) under management, it’s focused on real assets like renewable power, infrastructure, real estate, credit, and private equity. These are sectors that stand at the centre of global trends like decarbonization, digitalization, and de-globalization. Over the past year, BAM has leaned into those themes with massive fundraising and landmark partnerships that strengthen its long-term growth outlook.
Second-quarter numbers reinforced that momentum. Fee-related earnings jumped 16% year over year, distributable earnings climbed 12%, and net income hit $620 million, up 25% from last year. Management pointed to a surge of investor demand, with $97 billion raised over the last 12 months. Fundraising spanned everything from credit to infrastructure, with BAM bringing in $16 billion in credit alone during the quarter. Investors love these numbers because fee-bearing capital grew to $563 billion, meaning BAM’s base of recurring management fees keeps expanding.
More to come
What makes the Canadian stock particularly interesting now is how Brookfield is deploying that capital. In just the second quarter, the company committed $28 billion into assets ranging from midstream energy infrastructure to data centres and renewable power. One of the standout deals is its partnership with Google to deliver up to 3,000 megawatts of hydroelectric capacity in the U.S. That’s the largest corporate clean power deal for hydro in the world and a direct line into powering AI-driven demand for energy.
Another big win is a $10 billion digital infrastructure project in Sweden to support advanced computing. These deals not only provide scale but show how Brookfield is positioning itself as a go-to partner for tech giants and governments looking for long-term energy and infrastructure solutions.
Considerations
From a valuation standpoint, the stock isn’t cheap, trading at more than 38 times forward earnings. But investors have been willing to pay up because the business is growing fees consistently while also paying an attractive dividend. BAM declared a quarterly payout of $0.4375 per share, which works out to a yield near 3%. For an alternative asset manager riding powerful secular growth trends, that balance of income and growth potential is appealing. Right now, a $10,000 investment could bring in about $285 annually in dividend income alone!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BAM | $84.45 | 118 | $2.41 | $284.38 | Quarterly | $9,965.10 |
Risks do exist. Higher interest rates can put pressure on fundraising, while volatility in real estate and infrastructure markets can challenge valuations. Brookfield also relies heavily on global deal-making, so geopolitical risks are always in the mix. But management has proven adept at monetizing assets, with $55 billion of sales announced this year alone, showing it can crystallize value even in choppy markets.
Bottom line
The biggest reason it’s not too late to buy comes down to scale and visibility. With $128 billion of uncalled commitments waiting to be deployed, BAM has a long runway of growth already built in. That capital will earn fees once invested, adding hundreds of millions to earnings over time. Combine that with the firm’s ability to consistently raise record sums from institutions, and you’ve got a compounding machine that isn’t slowing down.
Brookfield Asset Management has already rewarded shareholders handsomely over the past year, but the business is still early in capitalizing on global megatrends. Whether it’s renewable power for data centres, infrastructure to support AI, or credit strategies for institutions, BAM sits at the intersection of demand for scale and expertise. For investors worried it might be too late, the truth is that this story still has plenty of chapters left to be written. Sometimes the best time to buy isn’t before the run, but right in the middle of it.
