Is it advisable to invest in the shares of Brookfield Asset Management at the current moment?
Brookfield Asset Management (BAM), a Canadian asset manager, is poised for growth across multiple investment horizons. The company, projected to be a growth investment, a yield investment, and a dividend growth investment, could be an attractive addition to various portfolios according to industry analysis.
More aggressive investors, including those with a dividend focus, might find BAM particularly appealing for further investigation. Currently, the company offers a dividend yield of 3.2%, more than double the S&P 500 yield and above the finance industry average.
BAM operates across several key business segments. These include Infrastructure, investing in essential assets like transportation, energy, and utilities; Renewable Power, focusing on renewable energy sources; Real Estate, engaging in property development and management; Private Equity, investing in a wide range of businesses; and Credit, providing financing solutions.
To achieve its ambitious goals, BAM employs strategic approaches such as diversification and expansion, strategic asset sales, increased focus on renewable energy, and enhancing capital efficiency. By doubling its fee-bearing capital by the end of the decade, BAM aims to significantly grow its global presence.
To reach this target, BAM is likely focusing on scaling existing businesses, attracting new capital, forming strategic partnerships or acquisitions, and creating innovative investment vehicles. These strategies are designed to position BAM as a leader in global asset management into the next decade.
Management projects a 15% annualized dividend growth through 2030, and the company aims to reach $1.1 trillion in fee-bearing capital by the end of the decade. The success of BAM depends heavily on its ability to grow its fee-bearing capital, a goal it is actively pursuing through its strategic initiatives.
In conclusion, Brookfield Asset Management presents an exciting opportunity for investors seeking growth, yield, and dividend growth. Its focus on renewable energy, strategic asset sales, and capital efficiency, among other strategies, positions it well for long-term growth and sustainability.
Investors seeking growth, yield, and dividend growth might find Brookfield Asset Management (BAM) an attractive option, given its projected growth across various investment horizons and a dividend yield of 3.2%, higher than the S&P 500 yield and the average finance industry yield. BAM's ventures in Infrastructure, Renewable Power, Real Estate, Private Equity, and Credit may potentially appeal to more aggressive investors, as it strives to grow its global presence by doubling its fee-bearing capital by the end of the decade. This aims to be achieved through strategic initiatives including scaling existing businesses, attracting new capital, forming strategic partnerships or acquisitions, and creating innovative investment vehicles.
