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Brookfield Asset Management is a top investment idea for the next 20 years. It's the fourth-largest holding in my family fund. The company pays a 4% dividend and has a strong track record of delivering solid returns. 20% returns for 40 years, with guidance for similar returns for the next 20. Brookfield has a bright future with growth potential in various markets, including insurance, private credit, global infrastructure, and the AI and green energy revolutions.
Dividend Aristocrats are generally excellent stocks for a retiree's passive income portfolio. They generally have wide moats, strong balance sheets, excellent management teams, and the ability to navigate all sorts of economic environments. We provide a diversified portfolio of 10 Dividend Aristocrats that have the potential to fund living expenses indefinitely and grow at a rate that beats inflation.
Most investors invest nearly mostly in stocks and bonds. I am different in that I focus mainly on alternatives. Here are 3 of my biggest alternative investments.
A.I.-Powered High-Yield And High-Growth From These Dividend Stocks
Brookfield Asset Management (NYSE: BAM) stock price has pulled back after soaring to a record high in March as investors waited for the upcoming earnings. After peaking at $42.97 in March, it has retreated to $39.
The expectation of interest rates remaining higher for longer has sent dividend stocks plummeting. However, the market is mispricing several high-quality dividend stocks that are set to grow rapidly even if interest rates remain higher-for-longer. I share some of my top picks that offer 6-7% yields and are set to grow at 10%+ per year for years to come, even if interest rates remain elevated.
Selecting the right sectors for dividend stocks is crucial for long-term total return outperformance and sustainable dividend growth. I share the criteria that I look for and my favorite sectors. I also share some of my top picks of the moment.
Every investor's needs are different. For my family fund, 10 companies make up 35% of the portfolio. Nine of these are still good to great buys today, offering excellent management, balance sheet strength, risk management, and growth prospects. For growth investors, growth rates as high as 162% are potentially available from some truly incredible (though speculative) companies I own.
Brookfield Asset Management has experienced significant growth by focusing on non-traditional asset classes such as credit, renewables, infrastructure, and real estate. The company has almost quadrupled its fee-bearing capital base from 2018 to 2023 and aims to reach $1 trillion in assets under management by 2028. However, there are concerns about BAM's ability to deliver outsized returns, as it has underperformed peers and clearly has struggled to extract the benefits of larger scale.
Charlie Munger emphasized the importance of reaching a $100,000 investment portfolio to generate substantial returns through compounding. A 7% dividend yield from a $100,000 portfolio can provide a $7,000 passive income stream, covering 1-2 months of living expenses and delivering five-figure annualized total returns. We provide a sample $100,000 passive income snowball portfolio, divided into sections including ETFs, individual high-quality infrastructure, BDCs, REITs, and MLPs.