Brookfield Asset Management (TSX: BAM) hasn’t been one of the market’s hottest performers so far in 2025. However, this large-cap company, sporting a market cap of $132.84 billion, has significant long-term growth potential. BAM is a leading alternative asset manager in the world, overseeing more than US$1 trillion in assets across high-growth areas like renewable energy, infrastructure, credit, private equity, and real estate.
Brookfield manages a wide range of investment products for both institutional and retail clients, earning steady management fees. At the same time, it deploys substantial amounts of capital into premium assets and businesses across different geographies. The combination of steady fee-based income and participation in investment gains provides a powerful engine for long-term growth.
Year to date, BAM stock is up just over 7%, trailing the S&P TSX Composite Index’s roughly 12% gain. But looking back over the past 12 months, the stock has surged more than 53.6%. Further, since listing on the exchange in December 2022, Brookfield has grown at a compound annual growth rate (CAGR) of 29.6%, translating to overall capital gains of just over 102%.
Brookfield Asset Management is also a dependable dividend payer. The company distributes about 90% of its distributable earnings to shareholders. Most recently, on February 12, 2025, Brookfield announced a quarterly dividend of US$0.4375 per share, a 15% year-over-year increase. At today’s share price, the dividend works out to a yield of around 3%.
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Why is BAM stock a solid long-term pick?
Brookfield Asset Management is a solid long-term stock offering growth and income. The alternative asset manager generates most of its income from fee-related earnings, with roughly 95% tied to long-term or perpetual capital. This operating structure ensures a steady, predictable revenue stream and distributable earnings, supporting its share price and distributions.
Brookfield’s investments in businesses or sectors tied to everyday economic activity add stability to its operations. The firm’s early investment in sectors such as renewable energy and data centres augurs well for growth. Its exposure to these high-growth segments puts it in the sweet spot of global investment flows. As capital pours into these high-growth sectors, Brookfield’s fee-bearing capital will increase, driving its earnings higher.
This is evident from its most recent quarterly performance. In the second quarter, BAM reported a 16% increase in fee-related earnings to $676 million, or $0.42 per share, while distributable earnings rose 12% to $613 million, or $0.38 per share. It raised $22 billion of new capital in just that quarter, bringing the total to $97 billion over the past 12 months. With fee-bearing capital now at $563 billion, up 10% year over year, the foundation for future growth is firmly in place.
Its large-scale infrastructure deals, anchored by contracted or regulated cash flows and protected by high barriers to entry, will support its long-term growth. Further, Brookfield aims to double its business in the medium term and expand fee-bearing capital to $1 trillion, which augurs well for growth.
BAM stock could more than triple in 10 years
With contracted, sticky revenues, a capital-light, debt-free model, and strong exposure to long-term economic trends, BAM offers investors a combination of resilience, growth, and income, making it a stock worth holding for years to come.
Its stock has increased at a CAGR of over 29% since listing on the exchange. Even if that pace slows to a more modest 12% CAGR, the stock could still reach $255.77 in 10 years, more than triple its August 20th closing price of $82.35.
