Brookfield Asset Management is a consistent dividend stock with strong price appreciation.
Brookfield's strong management has an excellent ability to secure low valued assets and turn them into sources of cash flow.
Brookfield Asset Management (BAM) has been one of the best performing dividend stocks in terms of price appreciation over the past decade. The company has over $385 billion in assets under management [AUM] and $164 billion in fee bearing capital. The stock increased from below $9 in the beginning of 2009 to the current price of over $52. That is a gain of 478% as compared to the S&P 500'S (SPY) gain of 292% over the same time period. BAM's performance was driven by the company's strong FFO (funds from operations) growth over the long-term.
Brookfield has a good chance to continue their strong performance as management employs their effective strategy and from multiple competitive advantages. These factors have the potential to drive double-digit FFO growth for most years. That should be the positive catalyst needed to drive the stock to outperform the S&P 500 going forward. The following is my long-term thesis for Brookfield.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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