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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: Hello, What is the reason for the generally tame performance of these two stocks? Is this mainly interest rate related. Can you please let me know on your thoughts and discuss the reasons to hold or not hold them for the long term. Thanks.
Shyam
Shyam
5i Research Answer:
BAM is up 2% YTD and up 26% in a year; BN is up 1.8% YTD and also 26% in a year. Neither return noted includes dividends (BAM 3.8%, BN 0.8%). Both returns are ahead of the TSX Financial Sector return, though more so on a one year basis than a YTD basis. The sector is up 8.3% over 52 weeks. Longer term, considering the split of BAM.A into BN and BAM, and the various spin outs prior to the split, the companies have been very strong long term value creators for shareholders. BN has $150B in capital available for deals, and BAM is an asset-light company generating substantial free cash flow that it returns to shareholders. Both companies raised their dividends in February.