Updated 3/6/25
Brookfield Corporation (BN) is a global powerhouse in alternative asset management, with investments spanning real estate, infrastructure, renewable power, private equity, and credit. The company has built its reputation on acquiring high-quality assets and generating long-term returns, making it a compelling stock for investors looking for stability.
For dividend investors, Brookfield presents an interesting opportunity. While its yield isn’t among the highest, its strong cash flow and diversified portfolio make it a stock worth considering for those focused on income and long-term capital appreciation. However, given its leverage and earnings volatility, investors need to assess the risks carefully.
Key Dividend Metrics
📈 Forward Dividend Yield: 0.65%
💰 Annual Dividend Rate: $0.36
📊 Trailing Dividend Yield: 0.58%
⏳ 5-Year Average Dividend Yield: 1.05%
⚖️ Payout Ratio: 103.23%
📅 Next Dividend Date: March 31, 2025
🚫 Ex-Dividend Date: March 14, 2025
Dividend Overview
Brookfield’s dividend yield sits at 0.65%, which is relatively low compared to traditional dividend stocks. While the company has maintained its dividend payments over time, the payout ratio is a concern. At 103.23%, it indicates that Brookfield is currently distributing more in dividends than it earns in net income.
This level of payout isn’t necessarily sustainable unless Brookfield can rely on steady free cash flow from its diverse holdings. The company has historically been conservative with dividend increases, prioritizing reinvestment over aggressive payouts.
Dividend Growth and Safety
Brookfield’s approach to dividends has been steady but not particularly generous. The five-year average dividend yield of 1.05% is slightly higher than the current rate, which suggests that dividend growth has lagged behind stock price appreciation.
Factors Supporting Dividend Safety
✔ The company owns a diversified portfolio of high-quality assets that generate stable cash flow.
✔ Many of its infrastructure and real estate investments operate under long-term contracts, providing revenue predictability.
❌ The payout ratio is above 100%, which raises concerns about sustainability unless earnings improve.
❌ Quarterly earnings have declined by 38.2% year-over-year, which could put further pressure on dividend payments.
Brookfield’s strong asset base gives it some flexibility, but its ability to maintain and grow dividends will depend on its future earnings trajectory. Investors should keep an eye on upcoming earnings reports to assess whether dividend coverage improves.
Chart Analysis
Recent Price Action
Brookfield Corporation (BN) has been on a steady uptrend for most of the past year, but the recent decline suggests a shift in momentum. The stock closed at $52.28, down from an intraday high of $54.18, which indicates some selling pressure near the top of the session. The last few trading sessions have seen increased volatility, with the stock dipping below its 50-day moving average for the first time in months.
Moving Averages Breakdown
The 50-day moving average (orange line) had been acting as a strong support level throughout the stock’s uptrend. However, the price has now broken below it, signaling potential weakness. The 200-day moving average (blue line) is still trending upward, currently sitting around $50, which could serve as the next key support level if the stock continues to slide. If the stock fails to reclaim the 50-day moving average in the near term, it may indicate a deeper pullback.
Volume Trends
Trading volume on this recent drop has been noticeably high, suggesting that sellers are in control for now. When stocks decline on elevated volume, it often signals stronger conviction behind the move. Looking at past volume spikes, BN has historically seen a rebound after sharp selloffs, but whether that pattern holds this time remains to be seen.
Relative Strength Index (RSI)
The RSI indicator at the bottom of the chart shows a clear decline, moving closer to oversold territory. When the RSI drops below 30, it can indicate that a stock is oversold and may be due for a bounce. Currently, the RSI is trending downward but not yet at extreme levels, meaning there could still be room for further downside before buyers step in.
Recent Candle Patterns
The last few candlesticks suggest an increase in downward pressure. The most recent candle has a relatively long upper wick, indicating that buyers attempted to push the price higher but were met with strong selling resistance. Over the past five sessions, there have been lower highs and lower lows, reinforcing the idea that the short-term trend has shifted downward.
If buyers don’t step in soon, the next key levels to watch will be the $50 mark, which aligns with the 200-day moving average, and the previous consolidation area around $48-$49. On the upside, a move back above $55 would be needed to signal strength and potential continuation of the longer-term uptrend.
Analyst Ratings
Brookfield Corporation (BN) has recently seen mixed reactions from analysts, with both upgrades and downgrades reflecting different perspectives on the company’s outlook. The consensus price target currently stands at $64.00, suggesting a potential upside of around 22% from the latest trading price of $52.28.
🔼 Upgrades
📈 Morgan Stanley recently initiated coverage on Brookfield with an Overweight rating and set a price target of $80.00. Analysts cited the company’s diversified asset base and strong management team as key reasons for their bullish stance. They believe Brookfield is well-positioned to navigate market challenges while continuing to generate stable cash flow from its infrastructure, real estate, and private equity holdings.
💰 Another recent upgrade came from a major investment firm that raised its rating from Neutral to Outperform, increasing its price target to $70.00. The firm highlighted Brookfield’s expanding alternative asset management business, which has been driving higher fee-related earnings. They also pointed to potential upside from the company’s long-term contracts in infrastructure and renewable energy.
🔽 Downgrades
⚠️ Credit Suisse recently downgraded Brookfield from Outperform to Neutral, adjusting its price target from $65.00 to $60.00. The downgrade was driven by concerns over higher leverage levels and potential valuation risks in certain parts of Brookfield’s real estate holdings. Analysts noted that some assets in the portfolio could face downward pressure due to rising interest rates and broader macroeconomic uncertainty.
📉 Another downgrade came from an investment bank that moved the stock from Buy to Hold, lowering its price target to $58.00. The firm cited slower-than-expected earnings growth and a decline in asset appreciation within the company’s private equity segment as reasons for the more cautious stance. They also expressed concerns about Brookfield’s ability to sustain its high payout ratio given recent earnings fluctuations.
These mixed ratings highlight both the strengths and challenges facing Brookfield. While some analysts see strong long-term potential in its asset management business, others are cautious about leverage and valuation risks. Investors will likely keep a close eye on upcoming earnings reports and broader market conditions to determine how Brookfield navigates these dynamics.
Earnings Report Summary
Brookfield Corporation just released its latest earnings report, and it’s clear the company had a solid year. With growth across its asset management business, strong fundraising efforts, and a boost in fee-related earnings, the company continues to expand its global investment footprint.
Steady Earnings Growth
Brookfield reported distributable earnings before realizations of $4.9 billion, which translates to $3.07 per share, a 15% increase per share from the previous year. When including realizations, total distributable earnings jumped to $6.3 billion, or $3.96 per share. While overall net income for Brookfield shareholders came in at $641 million, the company’s core earnings showed resilience across its investment platforms.
Asset Management Business Thrives
The asset management segment saw 17% growth in fee-related earnings in the fourth quarter alone, thanks to strong fundraising efforts and expansion in its credit platform. Brookfield’s fee-bearing capital grew 18% year-over-year, reaching a whopping $539 billion. The company raised over $135 billion in capital during the year, with $40 billion going into its latest flagship funds across different investment strategies.
Strong Performance in Wealth Solutions and Real Estate
Brookfield’s wealth solutions division nearly doubled its earnings compared to last year, largely driven by its acquisition of American Equity Life and strong investment returns. Meanwhile, its real estate business continued to show strength, with same-store net operating income growing 4%.
Infrastructure, private equity, and renewable power all held steady, generating reliable cash flow. On the renewables side, the company made some major moves, investing heavily in energy transition projects that should position it well for the future.
Dividend Increase for Shareholders
Brookfield rewarded investors with a 13% increase in its quarterly dividend, bringing it to $0.09 per share, or $0.36 annually. The dividend will be paid on March 31, 2025, to shareholders on record as of March 14, 2025.
Fundraising, Capital Deployment, and Liquidity
Brookfield proved once again that it has no trouble raising capital, bringing in $29 billion in the fourth quarter alone, and $137 billion for the full year. During the same period, it deployed $48 billion into a range of investments:
- Renewable energy saw a $4.5 billion investment, including a major acquisition of Neoen, a global renewables company.
- Real estate investments totaled $2.4 billion, focused mainly on U.S. multifamily properties and student housing.
- Credit platforms attracted $20 billion, with strong demand across infrastructure debt, insurance clients, and Oaktree strategies.
On the monetization front, Brookfield cashed out on $9 billion in assets during Q4 and $30 billion over the year, taking advantage of opportunities in both the real estate and renewables markets.
With $115 billion in uncalled fund commitments, Brookfield has plenty of firepower for future deals. Looking ahead, the company appears well-positioned to continue its growth while rewarding shareholders along the way.
Financial Health and Stability
Brookfield operates in capital-intensive industries, which means it relies heavily on debt to fund its investments.
🔹 Total Debt: $234.79 billion
🔹 Debt/Equity Ratio: 141.97%
🔹 Total Cash: $15.05 billion
🔹 Current Ratio: 1.06
Debt and Leverage Considerations
Brookfield’s leverage is significant, with a debt-to-equity ratio of 141.97%. While this is common for asset managers and infrastructure firms, it does introduce risk—especially in a rising interest rate environment.
The company holds $15.05 billion in cash, which provides some liquidity, but maintaining high debt levels requires consistent cash flow. Investors should monitor interest rate movements and the company’s ability to refinance debt efficiently.
Valuation and Stock Performance
Current Valuation Metrics
🔹 Forward Price-to-Earnings (P/E) Ratio: 14.56
🔹 Price-to-Book (P/B) Ratio: 1.99
🔹 Enterprise Value-to-EBITDA: 10.51
Brookfield is trading at a forward P/E ratio of 14.56, which is reasonable for an asset-heavy company with stable cash flow. The price-to-book ratio of 1.99 indicates that the stock is trading slightly above its book value, which is typical for firms in the asset management space.
Stock Performance Insights
The stock has seen notable swings over the past year, with a 52-week high of $62.78 and a low of $38.18. Currently trading around $52.58, Brookfield is down 4.8% on the most recent trading day.
It has dropped below its 50-day moving average of $58.30, signaling some short-term weakness. However, it remains above its 200-day moving average of $51.90, which suggests a more stable long-term trend.
Risks and Considerations
Brookfield is a well-established company, but dividend investors should weigh a few key risks before making any decisions.
High Debt Levels
The company’s reliance on debt is a double-edged sword. While leverage helps fund acquisitions and growth, it also creates risk in unfavorable economic conditions. If interest rates remain high, refinancing costs could become a burden.
Earnings Volatility
Earnings have declined sharply, with a 38.2% drop in quarterly earnings growth year-over-year. This makes it harder for Brookfield to maintain dividend payments and could lead to lower payout growth in the future.
Limited Dividend Growth
Compared to other dividend-paying stocks, Brookfield does not prioritize large dividend increases. Investors seeking high-yield, fast-growing dividends may find better options elsewhere.
Market Volatility
With a beta of 1.83, Brookfield’s stock tends to be more volatile than the broader market. This means investors should expect price swings, which could impact short-term returns.
Final Thoughts
Brookfield Corporation is a world-class asset manager with a strong track record of managing high-quality investments. For long-term investors, it offers stability and exposure to infrastructure, real estate, and private equity.
From a dividend perspective, there are both positives and negatives. While the company has a stable cash flow foundation and a history of maintaining dividends, its high payout ratio and debt levels introduce some risk.
For those looking for a high-yield dividend stock, Brookfield may not be the best choice. However, for investors seeking a long-term compounder with a diversified portfolio, it remains a stock worth watching.
Brookfield’s financial health and earnings performance will be key factors in determining its ability to maintain dividends going forward. Investors should stay informed and track upcoming earnings reports to get a clearer picture of the company’s future direction.
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