Brookfield (TSX:BN) is arguably one of the most consistent compounders on the TSX. This Toronto-based company has built its reputation by owning and managing real assets across the globe — from power and infrastructure to insurance and real estate. More importantly, it makes money in good times and finds opportunities in bad.
Brookfield mainly focuses on buying great assets, optimizing them, and repeating the playbook at scale. This could be one of the key reasons why it has managed to deliver over 280% in 10 years and nearly 120% in the last five years.
In this article, I’ll talk about why Brookfield stock still has plenty of room to grow — and where it could be heading over the next five years.
Brookfield stock
Brookfield stock is currently trading at $61.60 per share with a market cap of $152.5 billion. While it offers a modest annualized dividend yield of nearly 0.6%, the company returns capital in other ways too — including hefty share buybacks. In fact, it has repurchased over US$950 million worth of its Class A shares so far this year, which it considered undervalued.
One of the key factors that has driven Brookfield’s long-term success is its ability to deploy capital across multiple alternative asset classes. And its latest financial growth trends clearly reflect that. Let’s take a closer look.
Financials continue to strengthen
In the third quarter, Brookfield’s distributable earnings before realizations rose 6% YoY (year over year) to US$1.3 billion. For the last 12 months, that number hit US$5.4 billion — reflecting a strong 18% YoY jump.
In the latest quarter, the company’s asset management business led the charge, with fee-related earnings reaching a record US$754 million with the help of robust fundraising activity across key strategies. Brookfield also raised US$30 billion in the last quarter alone, the highest in three years.
Meanwhile, its wealth solutions arm saw earnings grow 15% YoY due mainly to strong annuity sales and a solid 5.7% average yield on its investment portfolio. Similarly, the firm’s insurance assets also grew to US$139 billion, and it expects this to increase to around US$180 billion once it closes the Just Group acquisition in 2026.
Loaded with capital and ready to deploy
Brookfield currently manages over US$860 billion in assets. And its recent announcement to acquire the remaining 26% of Oaktree is likely to further strengthen its credit business and open more doors to growth.
Despite the ongoing macroeconomic challenges, the company is setting up for the next growth cycle. At the end of the third quarter, it had a record US$178 billion in deployable capital, including US$74 billion in cash and available credit. That gives it really solid flexibility to pursue opportunities as they arise, especially when market volatility opens up attractive valuations.
Where could Brookfield stock be heading?
Notably, Brookfield has no corporate debt maturities through the end of 2025 and continues to access capital markets at favourable terms. Just last quarter, it issued US$650 million in 10-year notes, showing strong demand from institutional investors.
So, while most other companies are playing defence in the current economic environment, Brookfield is clearly playing offence. Whether it’s building new nuclear plants, investing in the clean energy transition, or supporting global artificial intelligence (AI) infrastructure, it’s focusing on planting seeds for future gains. That’s why I wouldn’t be surprised if Brookfield stock pushes well beyond its all-time highs over the next five years.
