There’s a lot more to stocks than just capital appreciation potential. With generous dividends and the potential for frequent dividend hikes, longer-term investors stand to do well on the total returns front with dividends that might just stand to do a bit more of the heavy lifting over time. In any case, let’s check in on two intriguing names that I think stand to be more rewarding for shareholders who choose to hang onto them for longer periods of time (think 15 years or more).
So, if you’ve got unused TFSA cash that’s parked in a savings account and you’re ready to put it to work in a market bargain after the latest bout of November volatility (stocks gained on Friday after a rather tumultuous rest of the week), take heed. That volatility might be opening the door to more opportunities for those investors keen on scoring the largest discount to intrinsic value possible.
In this piece, we’ll check in on one proven performer that I think has what it takes to not only end the year in a strong spot but to continue their market-crushing ways in 2026. As always, be ready to keep buying on the dips, as sometimes, all it takes is a market-wide hangover or an exhaustion of prior momentum to set the stage for such a steeper pullback.
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Brookfield Corp.
Brookfield Corp. (TSX: BN) is a diversified asset management play that a lot of smart money investors, including Bill Ackman of the legendary Pershing Square Capital Management, have taken a liking to. Not only are the alternative asset managers, with more of a real asset tilt, a great way to keep the cash flows going strong when the economic environment faces growing challenges, but they’re also nice to have when markets are doing well and new trends (such as the rise of AI and data centres) emerge. Brookfield Corp. is taking advantage of opportunities to power the AI boom in a relatively low-risk way, in my opinion.
Whether we’re talking about playing the power side (think renewables or nuclear reactors) or more direct bets on the AI data centre, Brookfield seems like a growth play and a defensive bet all in one. Additionally, Brookfield appears very disciplined in deploying capital across the various pitches thrown in its strike zone. So, even if you envision an AI bubble, Brookfield Corp. might be the way to benefit from the gains without participating (as much) in the collapse that follows.
In short, Brookfield Corp. stands out as a prudent, disciplined AI infrastructure enabler as it invests its plentiful cash flows wisely over time.
Perhaps Brookfield’s most significant source of a moat lies in its management team, which keeps making a slew of smart bets across a broad range of areas across the alternative asset scene. And with smart partnerships, I do think Brookfield is able to stretch every dollar as far as it can go when it comes to ambitious projects. That’s a good thing for ROIs, at least in my view.
Teaming up on investment endeavours tends to lead to the spreading of risk and the combining of talents, both of which are fantastic things when seeking to make smart bets that lead to a more than promising risk-reward trade-off. With shares dipping close to 6% for no real reason, I think there’s a chance to pounce right here. Sure, the 0.55% dividend yield isn’t massive, but the dividend growth trajectory, I think, is a gift that keeps on giving!
