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Brookfield Corporation Class A Limited Voting Shares (BN)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: In previous questions on BAM and BN 5i has generally shown a preference for BN for capital gains and BAM for income investors . In a question by Peter this morning 5i's answer showed a year to date return of 25% for BAM and 14% for BN {assuming that squiggly line in front of BN doesn't mean a loss } .... I realize the period is short but what is the historical return of each versus each other from inception of the newer security ? { And which one is the newer security and how long has it existed ? } ..... And if BN doesn't come out a clear winner please explain your thesis on income versus capital gains ?..... I am considering buying one of them in my RRIF ..... Thanks Garth
5i Research Answer:
The ~ means approximately. The split was effective Dec 1, 2022. BAM is up 7.0% and BN is down 7.0% since the split. The thesis relates to the 0.80% dividend yield on BN and 3.65% on BAM, and the fact that BAM has specifically indicated it plans to pay out the majority of cash flow as dividends, which leaves less capital available for growth initiatives. BN, meanwhile, has $140B in available capital ready for deal-making and growth initiatives.