When I look for dividend stocks to hold for years rather than months, I want more than a tempting yield. I want a business with recurring revenue, strong growth prospects, a diversified customer base, and management that has demonstrated an ability to compound capital. One dividend stock that repeatedly checks these boxes for me is Brookfield Asset Management (TSX: BAM).
At a dividend yield of roughly 4.3%, BAM offers an appealing combination of current income and potential long-term growth. At around $65 per share at writing, its quarterly dividend of US$0.5025 translates into an annualized payout of US$2.01; using the current foreign exchange rate between Canadian dollars and U.S. dollars, which works out to roughly 4.3%.
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A dividend backed by a growing business
What makes BAM particularly interesting is that the dividend isn’t the only reason to own the shares. Brookfield Asset Management is a global alternative-asset manager with more than US$1 trillion of assets under management. Its platform spans areas including infrastructure, energy, real estate, private equity, and credit.
This diversification matters. Instead of depending on one industry or a single source of earnings, BAM generates fee-related revenue across numerous strategies and investment products. In the 12-month period ending June 30, 2026, fee-related earnings rose 19% year over year to US$3.2 billion, while distributable earnings increased 12% to US$2.8 billion. Fundraising reached a record US$77 billion during the quarter and was US$98 billion in the first half of the year.
For a dividend investor, these numbers are important because they suggest the underlying business is expanding alongside the payout. After BAM was spun off from BN in December 2022, since 2023, it has increased its dividend every year at a double-digit rate. BAM’s last declared dividend hike was nearly 15% in February, which was extraordinary compared to the average dividend increases on the market.
The Brookfield connection is a major advantage
Another reason I keep coming back to BAM is its relationship with Brookfield Corporation (TSX: BN). BN currently holds a 73% ownership interest in BAM, consisting of a roughly 69% direct stake and another 4% through Brookfield Wealth Solutions.
That structure gives investors exposure to a highly established Brookfield ecosystem while still owning a pure-play asset-management business. BAM’s management can focus on raising capital, developing investment strategies and earning fees, while BN remains a major shareholder with a direct economic interest in BAM’s success.
This arrangement also creates an interesting alignment of interests: if BAM grows its fee-bearing capital, expands its strategies and increases earnings over time, BN participates in that growth alongside BAM’s other shareholders.
The bottom line
For me, BAM’s appeal comes down to three things: a meaningful dividend, a business model built around recurring fee revenue, and substantial exposure to the long-term growth of alternative assets.
Of course, risks exist in every investment. Asset managers can face fundraising slowdowns, weaker investment performance, market volatility, and valuation pressure. No dividend but the one that’s declared is guaranteed.
Still, when I want a dividend stock that offers income today while retaining a credible path to earnings and dividend growth, Brookfield Asset Management is one I keep coming back to. Its combination of scale, diversification, Brookfield ownership and growing cash generation makes BAM a compelling stock to investigate for investors building a long-term income portfolio.
