Reuben Gregg Brewer, The Motley Fool

Sun, Jun 1, 2025, 7:00 AM5 min read

• Brookfield Asset Management has a 3.1% dividend yield.

• The Canadian asset manager is focused on increasing its fee-bearing assets under management.

• The company is projecting dividend growth of 15% a year through the end of the decade.

• 10 stocks we like better than Brookfield Asset Management ›

Brookfield Asset Management (NYSE: BAM) is a large asset manager based in Canada. It recently increased its dividend by a huge 15%. And it believes it can keep doing that through to the end of the decade, or roughly five years. This has material implications for investors looking at the stock today. Here's what you need to know.

As an asset manager, Brookfield Asset Management takes money from clients and invests it for them. The company's historical focus has been on infrastructure assets, but it has been branching out into other areas, notably credit investing, in recent years.

All in, the business is centered around what are often called alternative assets, which can include everything from collectibles to timberland. This is a segment of the asset management industry that is seeing increased demand.

Brookfield Asset Management collects fees from its customers based on the amount of money it is managing. At the end of the first quarter of 2025, the company was overseeing about $550 billion in fee-bearing capital. That was spread across renewable power, infrastructure, private equity, real estate, and credit investments.

The two key takeaways here are that Brookfield Asset Management manages a lot of money, and it has five different investment approaches to generate growth.

And that's exactly that plan, with the company expecting to roughly double its fee-bearing capital to more than $1.1 trillion by 2029. Management believes that will support 15% annual dividend growth to the end of the decade. The current dividend yield is about 3.1%, an important number to keep in mind here.

Often, investors simply look at a dividend yield as a way to figure out how much income a stock will generate for them. That's a legitimate and accurate way to view a dividend, but it isn't the only "value" a dividend yield offers. Dividends tend to be consistent over time, much more so than earnings. And, thus, the dividend yield can end up being a useful valuation tool, as well.

That's proven out by the fact that stock prices often track along with dividends over time. Rising dividends lead to rising stock prices, and vice versa.