BAM - Brookfield Asset Management: Buying More Of This Dividend Grower Now

2024-05-09 08:00:00 ET

Summary

• The future for the alternative asset management industry remains bright and Brookfield Asset Management is still a leading player.
• The alternative asset manager's distributable earnings were flat during the first quarter, but medium-term growth looks intact.
• Relative to its size, BAM has an outsized net cash position.
• Shares of the alternative asset management giant could be priced 8% below fair value.
• BAM could be positioned for cumulative total returns of approximately 40% through 2026.

As my investment philosophy, I believe in picking quality businesses operating in industries with trends on their side. That is because, over the long run, such companies tend to deliver revenue and earnings growth.

The global alternative asset management industry is one industry that appears to have appealing growth potential. Preqin is the world's leader in alternative asset data and tools. The firm expects global alternative AUM to jump from $16.3 trillion to conclude 2023 to $24.5 trillion at the end of 2028. That would be an 8.5% compound annual growth rate....

For further details see: