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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, I hold BN and BAM (following the spinoff) in a registered account. BAM is a small position, any reason I should hold on to it? I have no need for dividends. Thanks!
5i Research Answer:
It is true that BAM targets investors who value income and dividend growth, while BN targets investors who prefer capital appreciation and compounding. That being said, we think the prospects for BAM in terms of potential total returns are quite attractive, given that BAM expects to grow its earnings by around 12%-15% organically while paying out most of the earnings as dividends. We think the investment case for BAM is still attractive as a long-term holding.