A falling stock price can create an attractive buying opportunity, but only if the underlying business remains strong. After all, some stocks decline because their fundamentals are deteriorating. That raises an important question for investors today: with Brookfield Asset Management (TSX:BAM) down roughly 23% from its 2025 highs, is this high-yield dividend stock worth buying in June?
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A high yield backed by strong dividend growth
One of the biggest reasons income investors are drawn to Brookfield Asset Management is its dividend. At the time of writing, the stock offers a yield of approximately 4.3%, which is more than double the Canadian market’s yield of about 2.1%, using the iShares S&P/TSX 60 Index ETF as a benchmark.
However, a high yield alone is not enough. Investors should also look for companies that can consistently grow their payouts. Brookfield Asset Management has demonstrated exactly that. Since being spun off from its parent company in 2022, the asset manager has increased its dividend at a compound annual growth rate (CAGR) of nearly 12%.
This combination of a generous starting yield and double-digit dividend growth creates a compelling long-term income opportunity. For investors seeking both passive income and rising cash flow, Brookfield Asset Management is a top pick among Canadian dividend stocks.
A business built for long-term growth
Brookfield Asset Management’s growth story is driven by its ability to attract capital and generate recurring fee income. The company manages assets across infrastructure, renewable power, private equity, real estate, and credit strategies, giving it access to multiple growth avenues.
Its business model is particularly attractive because approximately 95% of its fee revenues are tied to long-term or perpetual capital. This provides highly visible and predictable earnings, reducing the uncertainty often associated with financial companies.
The results continue to support the investment thesis. Over the last 12 months ending in the first quarter, Brookfield Asset Management generated fee-related earnings per share (EPS) of US$1.89, representing growth of 18% year over year. Meanwhile, distributable EPS increased 12% to US$1.69.
The company also continues to attract significant investor capital. Fee-bearing capital reached US$614 billion, up 12% from a year earlier, supported by more than US$108 billion in fundraising over the past 12 months. Growth in alternative credit, private wealth distribution, and insurance asset management should provide additional tailwinds in the years ahead.
Is the recent pullback a buying opportunity?
Despite its strong fundamentals, Brookfield Asset Management shares have pulled back significantly from their highs. For long-term investors, this decline represents an opportunity.
Importantly, there is little evidence that the company’s core business is weakening. Brookfield Asset Management continues to raise capital, grow earnings, and benefit from powerful secular trends that are increasing demand for alternative investment products. At less than $66 per share, the stock also trades below the analyst consensus price target, implying potential upside of roughly 22% in the near term. While no stock is immune to market volatility, the current valuation appears far more attractive than it was a year ago.
Investor takeaway
Brookfield Asset Management combines a high 4.3% dividend yield with strong earnings growth, expanding fee-bearing capital, and a highly predictable business model. Although the stock is down about 23% from its 2025 highs, its fundamentals remain intact. For investors seeking a growing stream of income and long-term capital appreciation, the recent pullback appears to be an attractive opportunity to start or add to a position in June.
