When it comes to real estate asset management companies, the Brookfield batch is the best. Yet when it comes down to which you should buy, there are quite a few things to consider.
Brookfield Asset Management
BAM stock can be referred to as the original when it comes to Brookfield stocks. The asset manager currently has US$850 billion of assets under management across several real estate sectors. This includes infrastructure, renewable power, private equity, and credit. The goal is to create long-term growth through these essential businesses by investing worldwide.
BAM stock had a strong recent second quarter, seeing US$37 billion of capital raised year to date. This means it is on track to achieve record inflows of around US$150 billion in 2023 alone. This included the closure of a record US$27 billion for infrastructure funds to date. Furthermore, it has a commitment towards US$50 billion in new investments.
The company currently trades at a relatively valuable 13.58 times earning, with a 3.8% dividend yield as well. Shares of BAM stock are almost exactly where they were a year ago though, with hardly any movement. That can be a good thing, considering how volatile the market has been.
Brookfield Infrastructure Partners
If you really want to get essential, then BIP stock may be the answer. This company invests in any type of essential infrastructure. This includes energy production, telecommunications, and more. These investments are also described as long-term, high-quality investments across transport, data, and utilities. And again, the company invests all around the world.
The company also managed to have a strong second quarter. The company continued to achieve its initiatives for the year, with a goal of US$1.9 billion in asset sales set out for the next year. Furthermore, net income more than doubled year over year, with its segments increasing across the board.
While its performance may have been resilient, its share price hasn’t been. Shares are down 20% in the last year as of writing. Yet it also trades at a whopping 96 times earnings at the time of writing. Further, the dividend yield is lower, trading at 4.69%.
Finally, we have another long-term stock. Like the other two Brookfield stocks here, BEP stock is a global real estate company focusing on renewable energy. From nuclear reactors to offshore wind farms, the company has operations across the world.
The company continued to see growth this year, with the beginning of the year more affected by interest rate hikes than today. There was a 10% increase in funds from operations in its second quarter, yet the stock still traded at a net loss of US$39 million. Even so, BEP stock is looking forward to growth initiatives now worth around US$1.3 billion.
Yet the big question is, how long will all these initiatives take to see this huge surge in income, especially after the difficult year the company has had in terms of share increases? Shares are down 27% in the last year, yet this now has led to a 5.07% dividend yield.
When it comes down to which Brookfield stock to pick up on the TSX today, I would consider BAM stock the safest option. It’s still trading in value territory, offers a strong 3.8% dividend yield, and has a share price that’s remained strong, despite the volatile market. What’s more, it gives exposure to all of these asset sectors, providing diversified income as well. So, if you’re going to go with just one Brookfield stock, consider BAM stock today.
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* Returns as of 8/16/23
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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Asset Management, Brookfield Infrastructure Partners, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.