Tax-Free Savings Account (TFSA) investors don’t have to choose between income and growth. With the right stocks, you can build reliable streams of tax-free income while benefiting from long-term capital appreciation. One obvious “set-it-and-forget-it” candidate for 2026 and beyond is Brookfield Asset Management (TSX:BAM) — especially after its recent pullback.
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A rare opportunity after a market correction
The asset management sector has faced pressure recently, and Brookfield Asset Management hasn’t been spared. The stock is down roughly 27% from its 2025 highs, pushing its dividend yield up to an attractive 4.5%. For long-term investors, that combination of a lower price and higher yield is exactly what creates opportunity.
Better still, Brookfield Asset Management has consistently increased its dividend since being spun off in 2022. That growing income stream is particularly powerful inside a TFSA, where every dollar earned is shielded from taxes.
Even more encouraging, the analyst consensus price target suggests a meaningful upside of around 36% from current levels. While price targets should never be taken as guarantees, they reinforce the idea that today’s valuation may be overly pessimistic — giving patient investors a favourable entry point.
Brookfield Asset Management: Built for durable, predictable growth
Brookfield Asset Management’s strength lies in its business model. Unlike many asset managers, essentially all of its distributable earnings are fee-related — the most stable and predictable form of revenue in the industry. Even more impressive, over 95% of those fees come from long-term or perpetual capital, providing exceptional visibility into future cash flows.
The company has also spent the past decade expanding across asset classes, geographies, and client types. This diversification ensures it always has multiple growth levers, regardless of the economic environment. When one segment slows, another often accelerates — smoothing out overall performance.
This consistency is exactly what “set-it-and-forget-it” investors should prioritize. You’re not trying to time cycles — you’re owning a business designed to perform through them.
Positioned for the next decades of megatrends
Looking ahead, Brookfield Asset Management is targeting powerful global tailwinds. Its 2026 outlook highlights an infrastructure “supercycle” driven by artificial intelligence (AI), decarbonization, and digitalization. These trends are expected to fuel massive investment in data centres, energy systems, and industrial infrastructure.
Brookfield Asset Management is already deeply embedded in these areas, focusing on operational improvements rather than financial engineering. This approach aims to deliver steady, inflation-resistant returns — a key advantage in uncertain economic conditions.
Management is targeting long-term growth of 15–20% annually, alongside a high but sustainable payout ratio of about 90%. Even if growth comes in lower — say around 10% — investors could still reasonably expect total returns north of 14% annually when factoring in the dividend. That’s a compelling proposition for a largely hands-off investment.
Investor takeaway
For TFSA investors seeking a true “set-it-and-forget-it” stock, Brookfield Asset Management checks all the boxes: a discounted share price, a growing and tax-free dividend, highly predictable earnings, and strong exposure to long-term global trends. While no investment is risk-free, its resilient business model and clear growth runway make it a persuasive choice for building wealth steadily over time.
