1 Magnificent TSX Dividend Stock Down 25% to Buy and Hold for Decades

This TSX dividend giant could reward patient investors with decades of growth and income.

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Key Points
  • Brookfield Asset Management (TSX:BAM) combines strong dividend growth with exposure to infrastructure, renewable energy, and AI trends.
  • This TSX dividend stock posted record 2025 results and raised its dividend by 15% earlier this year.
  • Given its consistently improving outlook, BAM could be a top long-term TSX stock to buy and hold for decades.

If you keep on chasing whatever stock is soaring at the moment, you might miss out on great investing opportunities for the long term. More often than not, long-term wealth is built by buying high-quality companies during periods of temporary weakness and then holding them patiently for years. Such stocks become even more attractive when they also pay reliable dividends along the way.

In this article, I’ll highlight one magnificent TSX dividend stock that long-term investors may want to consider buying and holding for decades.

dividends can compound over time

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Brookfield Asset Management stock

When it comes to building wealth over the long run, stocks tied to real assets and global investment trends usually have an edge — and Brookfield Asset Management (TSX: BAM) fits right into that category. It’s one of the largest alternative asset managers in the world, focusing on investing client capital into real assets and essential service businesses across sectors such as renewable power, infrastructure, real estate, private equity, and credit.

As of May 5, BAM stock settled at $66.03 per share with a market capitalization of about $108 billion. Although the stock currently trades nearly 25% below its 52-week high, it has gained nearly 7% so far in the second quarter, showing signs of recovery despite broader market volatility. In addition to its long-term growth potential, Brookfield currently offers investors a quarterly dividend, with an annualized yield of around 4.2%.

What makes BAM stock even more attractive is the quality and diversification of its business model. The company invests in assets that tend to remain important regardless of economic cycles. Infrastructure, renewable energy, and essential real estate assets continue generating demand over time, which helps provide Brookfield with durable long-term cash flow opportunities.

Stronger investment income and valuation gains

Brookfield Asset Management posted record financial performance in 2025, driven by strong fundraising activity, capital deployment, and asset monetization.

In the fourth quarter alone, BAM raised a record US$35 billion of capital, bringing total 2025 fundraising to US$112 billion. Its fee-bearing capital grew 12% year over year (YoY) to US$603 billion.

Similarly, the company’s fee-related earnings — a key profitability metric for asset managers — rose 22% YoY in 2025 to a record US$3 billion, while its distributable earnings increased 14% from a year ago to US$2.7 billion.

Encouraged by these strong results, Brookfield Asset Management also raised its quarterly dividend by 15% to US$0.5025 per share, reflecting management’s confidence in future cash flow growth.

This TSX dividend stock could benefit from these trends

Notably, governments and corporations worldwide are investing heavily in infrastructure modernization, energy transition projects, private credit markets, and artificial intelligence (AI) infrastructure. BAM appears well-positioned to capitalize on these opportunities given its global scale and deep operational expertise.

For example, the company recently launched a US$100 billion global AI infrastructure program focused on developing the physical infrastructure needed to support AI growth, including data centres, power generation, and compute infrastructure.

At the same time, BAM’s balance sheet and liquidity position also remain solid. At the end of 2025, the company had US$134 billion of uncalled fund commitments and US$3 billion of corporate liquidity, giving it great flexibility to pursue new investments and strategic acquisitions. Given these fundamentals, Brookfield Asset Management could be a great TSX dividend stock that rewards patience for decades, especially for investors willing to think beyond near-term market noise.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

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