I’m Betting on Brookfield After a 15% Jump in Distributable Earnings Per Share

Here’s why Brookfield’s ability to keep finding high-quality investment opportunities makes it one of the best TSX stocks to buy and hold.

Key Points
  • Brookfield Corporation (TSX:BN) is a top TSX growth stock with long-term potential, driven by rising demand for infrastructure like electricity and data centers.
  • Its diverse businesses, including asset management, insurance, and infrastructure, enhance recurring earnings, with a 15% increase in distributable earnings per share reported recently.
  • Brookfield effectively reinvests earnings, using scale and relationships to maximize opportunities, evidenced by a 72% growth in annual DE per share over four years, and a valuation of 15 times those earnings.

When it comes to buying high-quality growth stocks on the TSX, few companies give you as much confidence in their long-term potential as Brookfield Corporation (TSX: BN).

That’s especially important today, with growing demand for electricity, data centres and other major infrastructure creating opportunities that could last for decades.

However, those projects take a tonne of money, and getting them built requires experience and relationships that can take years to develop.

That gives companies with those advantages plenty of room to grow, especially if they can keep using the earnings from their existing investments to help fund new ones.

So, with Brookfield reporting a 15% increase in distributable earnings per share in its latest quarter, here’s why it’s one of the most intriguing Canadian stocks to buy and hold for years.

Paper Canadian currency of various denominations

Source: Getty Images

What’s driving BN’s earnings growth?

Because Brookfield owns so many different businesses and its reported profit can be affected by changes in investment values, distributable earnings (DE) is one of the main measures investors use to assess the earnings available to reinvest in the business or return to shareholders.

In the second quarter, its DE before realizations per share increased 15% year over year, from US$0.53 to US$0.61, and that measure excludes realized performance fees and gains from selling investments, which gives investors a better look at its recurring earnings.

And that increase isn’t even that surprising considering that Brookfield has several businesses contributing to that growth.

For example, its majority stake in Brookfield Asset Management gives it exposure to a business that earns fees for investing other people’s money. That means as BAM attracts more capital, Brookfield can benefit from growing fees without needing to fund all those investments itself.

In fact, its fee-related earnings grew 20% year over year in the second quarter.

Meanwhile, Brookfield’s insurance operations invest the assets backing their policies, aiming to earn more than the cost of meeting their obligations. That business is becoming an increasingly important source of growth, with earnings rising 23% year over year in the quarter.

Plus, its interests in infrastructure, renewable power, real estate and other businesses provide additional earnings, but more importantly, those businesses can work together on larger opportunities, giving Brookfield more ways to expand and keep reinvesting its growing earnings.

That’s why Brookfield continues to be one of the best stocks to own for years, with numerous ways to grow while continuously generating more money to put towards its next investments.

Why Brookfield stock looks attractive today

As I mentioned above, one of Brookfield’s biggest advantages is how those businesses can work together when a major opportunity comes up.

A data centre, for example, needs property, power and financing, giving a company with experience across all three more ways to invest as that industry grows.

Furthermore, Brookfield can invest alongside the funds it manages, helping it pursue opportunities that would be much harder to take on using only its own capital.

That’s why its size and relationships are so valuable. They help it find and complete deals, while its operating experience gives it more ways to improve the assets after buying them.

Of course, the returns it earns on those investments still matter. Attracting more money only helps shareholders if Brookfield continues to effectively put it to work.

However, Brookfield has an incredibly impressive track record across several of its businesses, and BN specifically has shown it can keep building its earnings per share over time.

For example, over the last four years ending in June 2026, Brookfield’s annual DE before realizations per share increased roughly 72%, from US$1.39 to US$2.39.

And with the stock trading at roughly 15 times those earnings today, it’s reasonably valued given how much long-term potential it has.

Brookfield also spent roughly US$580 million buying back its own shares in the first half of 2026, which can help grow earnings per share and suggests management sees real value in its own stock, given all the other opportunities it has to put that money to work.

That’s why Brookfield remains one of the top Canadian growth stocks to consider today. As its existing investments generate more money, it can keep putting that capital to work and building more earnings behind every share you own.

Fool contributor Daniel Da Costa has positions in Brookfield Asset Management and Brookfield Corporation. The Motley Fool has positions in and recommends Brookfield Corporation. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

More on Investing

A meter measures energy use.
Energy Stocks

Rates Are Rising Again: Is Emera Still a Sensible Retirement Stock?

Emera still offers retirement income, but borrowing costs and per-share earnings decide how comfortably that payment can grow.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

How to Use a TFSA to Generate $200 in Monthly Tax-Free Income

Use a TFSA to build $200 in monthly tax-free income with XEI and ZRE. See how these ETFs work and…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

Smart Ways to Invest Extra Income and Say Goodbye to Financial Stress

Canadians have ways to make their extra income work as hard as they do and say goodbye to financial stress.

Read more »

how to save money
Energy Stocks

How Much Would You Need to Invest in Enbridge to Average $200 a Month?

Enbridge’s current dividend needs roughly $42,600 in shares to average $200 monthly, with payments arriving every quarter.

Read more »

Two seniors walk in the forest
Dividend Stocks

Sun Life Stock Pays 3.3%: How Much to Invest for $100 a Month in Dividends

Sun Life Financial (TSX:SLF) might be a massive bargain after Thursday's vicious plunge as stock markets sold off hard.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn Your TFSA Into $1,000 a Month in Tax-Free Income

Build toward $1,000 a month in tax-free income with a TFSA. See how Enbridge, Scotiabank and ZWC could help, and…

Read more »

customer fills up car with gasoline
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

A safety fund equivalent to 3 to 6 months of living expenses is generally the baseline buffer that Canadians would…

Read more »

Piggy bank in autumn leaves
Bank Stocks

Rates Are Rising Again, So Are GICs and High-Interest Savings ETFs Even Worth It?

The Bank of Canada hiked rates to 2.50%. See what a GIC or the Purpose savings ETF earns on $10,000…

Read more »