If you’re looking to buy individual stocks, you’re usually better off buying them when they’re down. The reason is, stocks (collectively) tend to rise and pay dividends over time, and the lower you buy the more of the price appreciation you enjoy. This is a mathematically simple concept, yet many people make the mistake of chasing stock price trends rather than value. To illustrate the principle of why buying low is often a good idea, I will explore one TSX stock that is down 11.3% over the last year, and I still have every intention of holding long term.
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Brookfield Asset Management
Brookfield Asset Management (TSX: BAM) is a Canadian alternative asset manager that was previously part of Brookfield Corp. Confusingly, the entity that went on to be called “Brookfield Corp” was originally called Brookfield Asset Management, while today’s Brookfield Asset Management was a subsidiary of that company.
Confusion about the name aside, there can be no confusion over BAM’s performance. The company is highly profitable, with sky high margins and returns on equity/capital, and is growing as well. Some key profitability metrics include:
- A 74.4% gross margin.
- A 66% operating income (EBIT) margin.
- A 49% net income margin.
- A 47% free cash flow (FCF) margin.
- A 35% return on equity.
- A 17% return on capital.
All of the metrics are best in class for the financial services sector, making BAM an indisputably profitable enterprise. But they aren’t the only metrics that this company has going for it. It also boasts solid growth metrics, including:
- 31.9% trailing 12-month (TTM) revenue growth.
- 42% EBIT growth.
- 13.5% EPS growth.
- 67% levered FCF growth.
These metrics suggest that BAM grew at a very rapid pace in the TTM period. And as I will show in the next section, that growth appears likely to continue.
Fundraising: A catalyst for growth
In recent years, Brookfield Asset Management has been having much success in fundraising, raising $168 million over the last 12 months. The company said that it raised $77 billion in the most recent quarter and invested $21 million in the same quarter. That would imply that it had at least $56 billion in committed and un-invested capital at the end of the quarter. As that capital is committed to investments, it will gradually start generating fee income for Brookfield, driving more earnings growth into the future.
Dividend potential
Brookfield Asset Management’s declared dividend in the most recent quarter was $0.70 (converted from US$5.03) per quarter, or $2.81 per year. At today’s stock price of $76.53, that gives us a 3.7% dividend yield. So, if you invest $100,000 in Brookfield stock, you should get about $3,670 per year back in annual dividends if the payout doesn’t change. See figures below.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Brookfield Asset Management | $76.53 | 1,307 | $0.7035 per quarter ($2.814 per year) | $919.50 per quarter ($3,678 per year) | Quarterly |
Foolish takeaway
Despite its 11.3% decline in the markets over last 12 months, 2026 has been an eventful year for Brookfield Asset Management. The company has grown, made investments in AI, and embarked on a potential restructuring. Nobody knows exactly what the future holds, but the odds are it’s pretty bright.
