Long-term Canadian investors should consider buying quality dividend stocks on every major dip. One such TSX dividend stock is Brookfield Corp (TSX:BN), down more than 15% from its all-time highs.
Here is why long-term Canadian dividend investors should pay attention.
Source: Getty Images
The bull case of investing in this TSX dividend stock
Brookfield is a global investment firm built around three core businesses: asset management, wealth solutions, and operating businesses in real estate, infrastructure, and renewable power.
Valued at a market cap of $128 billion, Brookfield is among the largest companies in Canada. Despite the ongoing pullback, the TSX stock has returned more than 300% to shareholders in the past decade.
Over the last 12 months, Brookfield generated US$5.7 billion in distributable earnings. Its asset management arm raised US$108 billion of new capital, pushing fee-bearing capital up to US$672 billion.
Its wealth solutions business, which includes insurance, grew total insurance assets to $190 billion after integrating the recently completed acquisition of Just Group in the U.K.
Over the past year, Brookfield returned $1.5 billion to shareholders, split between $900 million in opportunistic share buybacks and $600 million in dividends.
The company also completed $170 billion of financing across its businesses, which indicates how easily it can access capital even in a choppy market.
The track record behind this top dividend stock
Distributable earnings per share sit at US$2.54, up from US$1.29 five years ago. Comparatively, the annual dividend per share is around $0.28, indicating a payout ratio of around 15%. Thus, Brookfield can easily double its dividend and still have enough cash to reinvest in growth and acquisitions. Brookfield has increased distributable EPS by 15% annually in the last five years.
On the July call, Brookfield President and Chief Financial Officer Nicholas Goodman told shareholders the company is “exceptionally well positioned to continue scaling our earnings at more than 20% annually over the next 5 years,” pointing to US$2.54 per share growing to US$5.85 per share by 2030 from the core business alone, and US$6.95 per share once capital allocation is factored in.
Given the 15% payout ratio, BN could increase its annual dividend to more than US$1 per share by 2030, which should increase the yield-at-cost to 2.5%. Brookfield ended Q2 with a strong balance sheet, which carries an A- credit rating and US$188 billion of deployable capital.
Brookfield also just cleared a major structural milestone.
Shareholders approved a transaction to combine Brookfield Corporation with Brookfield Wealth Solutions under a single publicly traded company.
Management framed this as a move to simplify the corporate structure, give the insurance business direct access to Brookfield’s permanent capital base, and open a path toward broader index inclusion over time.
The deal is expected to close in late 2026, pending court approval and other customary conditions.
What this means for your dividend portfolio
None of this guarantees the stock will not fall further in the short term. But when I weigh a temporary price drop against a business compounding distributable earnings at double-digit rates, growing its capital base, and simplifying its structure to unlock more value, I know which side of that trade I want to be on.
Since 1995, the company says its shareholders have earned an 18% annualized compound return, compared to roughly 11% for the S&P 500 over the same stretch.
For Canadian dividend investors building a portfolio meant to last decades, a dip in a well-run compounder like Brookfield can be a massive buying opportunity.
