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  5. BAM: Please explain how those Brookfield entities and others fit in a balance portfolio of stocks in terms of growth and income. [Brookfield Asset Management Ltd. Class A Limited Voting Shares]
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Q: Please explain how those Brookfield entities and others fit in a balance portfolio of stocks in terms of growth and income. What would be your ranking preference long term? Would you suggest other Brookfield companies to complete the picture?

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Asked by Jean on January 30, 2025
5i Research Answer:

**edited for addition**

BN is at the top of the group and can be considered the 'parent' company. It owns stakes in most other group companies so some representation is always there if one owns BN. We would consider it the best growth-focused stock of the group and also the safest, as cash flow from the subsidiaries flows 'up' to it. It also has $150B in capital available for deals. BIPC is more income focused, with infrastructure assets generating good cash flow which it pays out as dividends. BEP.UN is similar with a focus on renewable energy. These two can be owned and we like them but consider them better for income vs growth. BNT has done well but is much smaller, with zero analyst coverage. However, it can be exchanged for BN so they can be considered more or less equivalent.  Portfolio-wise, we would focus on BN for growth and BIP/BEP for income, and allocate accordingly.