The Company in a Nutshell
- BAM is the engine behind “Brookfield business family” projects.
- The interest for alternative assets is increasing, especially for institutional investors.
- BAM shows great geographic and project diversification.
- Download PDF format (Last reviewed: Sept 9th 2019)
|PRO Rating||3||Dividend Yield||1.00%|
|Dividend Safety||4||Dividend Growth Since||2012|
|DDM Valuation||-48.22%||Dividend Frequency||Quarterly|
Brookfield Asset Management Inc owns and manages commercial property, power, and infrastructure assets. Its investment focus includes Real Estate, Infrastructure, Renewable Power and Private Equity. Real Estate is made up of office and retail properties; Renewable power is made up of hydroelectric, wind, solar, and storage generating facilities; Infrastructure is made up of utilities, transport, energy, data infrastructure, and sustainable resource assets; and Private Equity is focused on business services, infrastructure services, and industrial operations.
|General Information||GE Data|
|Expected Earnings Date||2020-02-13|
|Next ex-dvd date||N/A|
Investing in alternative assets is a great way to diversify a portfolio. However, the process of investing in a power plant or a new bridge is complex for any small investor. For this reason, institutional investors pool money and work with firms like BAM to invest in those types of projects. BAM is present in countries showing interesting growth potential for years to come (e.g. Brazil, Chile, China, Colombia, India, Peru, South Korea). If you are looking for higher income sources, you can try BIP.TO or BEP.TO instead of BAM.
|5-Yr Rev. Growth:||28.88%|
|5-Yr EPS Growth:||15.52%|
|5-Yr Div Growth:||13.94%|
BAM shares have risen rapidly over the past few years. This rapid growth could hurt when entering in a new position. As with any other financial company, if the market goes into correction territory, BAM will be among the first ones to be hit. Its growth depends on investors confidence in long-term projects. When panic arises, it becomes difficult for companies like BAM to increase their AUM.
|Financial Debt to EBITDA (TTM)||6.9|
|Current Ratio (Quarterly)||1.68|
|Free Cash Flow (Quarterly)($B)||1.452|
Dividend Growth Perspective
The Management team in place is known for its ability to generate growth for investors through its projects. It is also true when it comes down to dividend payments. Both cash payout and payout ratios are still under control and you can expect a “classic” $0.01/share increase each year. BAM entered the Canadian Dividend Aristocrats list in 2017 and we expect they will keep the momentum going. Keep in mind we added a currency factor of 1.25 to our DDM calculations as the dividend is paid in USD.
|Payout Ratio (%)||19.32%|
|Cash Payout Ratio (%)||18.31%|
|Enter Expected Dividend Growth Rate Years 1-10:||8.00%|
|Enter Expected Terminal Dividend Growth Rate:||7.00%|
|Calculated Intrinsic Value OUTPUT 15-Cell Matrix||Metric2||Metric3||Metric4|
|Discount Rate (Horizontal)||Discount Rate (Horizontal)||Discount Rate (Horizontal)|
|Margin of Safety||8.00%||9.00%||10.00%|
|Market Cap ($)||90B|
|Price to Book Ratio||2.3|
- Data by Ycharts or Google Finance
- Dividend triangle chart is updated every 6 months.
- All other metrics are updated every 5 minutes (price) or weekly.
- The PDF format includes only comments (no metrics) and are reviewed every 6 months.