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Why Brookfield Asset Management (BAM) Stands Out as a Top Financial Stock to Buy Right Now

Why Brookfield Asset Management (BAM) Stands Out as a Top Financial Stock to Buy Right Now

Author:
foolstock
Published:
2025-08-21 20:25:00
13
1

Brookfield Asset Management isn't just weathering the storm—it's building arks while others watch the floodwaters rise.

Massive Global Footprint

With over $850 billion in assets under management, Brookfield operates across real estate, infrastructure, renewable energy, and private equity. That diversification isn't just smart—it's a survival mechanism in today's volatile markets.

Recurring Revenue Engine

Long-term contracted cash flows from essential infrastructure assets provide stability that would make most traditional finance firms blush. While banks chase quarterly earnings, Brookfield locks in decades-long returns.

Institutional-Grade Durability

Pension funds and sovereign wealth trusts don't park their money with amateurs. Brookfield's client roster reads like a who's-who of institutional investors who've seen every market cycle—and still choose BAM.

Because let's be honest: in a sector where most financial firms can't see past next quarter's earnings call, Brookfield plays chess while everyone else struggles with checkers.

A person near several upward pointing arrows.

Image source: Getty Images.

Rapidly rising fee-based income

Of Brookfield's $1 trillion in assets under management (AUM), about $563 billion currently generates fees. Over the past year, this fee-bearing capital produced $2.7 billion in fee-related earnings. Brookfield returns most of this income to shareholders through a dividend that currently yields close to 3%.

Brookfield sees strong growth ahead for its fee-bearing assets, earnings, and dividend payments through 2029. The company expects to more than double its fee-bearing capital to $1.1 trillion by the end of the decade by putting more of the capital it has already raised from investors to work and attracting new capital. Key growth drivers include rising investor demand for alternatives, new fund launches, and expanding into new capital sources, such as insurance companies and high-net-worth investors.

As Brookfield's fee-bearing capital grows, the company expects it to drive 17% compound annual fee-related earnings-per-share growth through the decade. Distributable earnings per share are on track to rise even faster at 18% annually, helped by the realization of carried interest (its share of the profits from funds it manages above certain return thresholds). By 2029, Brookfield estimates it will generate $2 billion in carried interest alone.

With earnings rapidly rising, Brookfield expects to grow its dividend by more than 15% per year. This combination of rising earnings and dividends positions the company to deliver strong total returns over the next five years.

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