Continuing with our discussion of the Brookfield family of entities in our previous blog, today we’ll rank each Brookfield entity and outline which ones we think are worth owning over the long term.

Most investors are familiar with BN’s strategy of spinning out high-quality businesses once those subsidiaries reach maturity, targeting different investor needs while maintaining significant ownership and control. For example, dividend-seeking investors may prefer stable, income-producing securities, while growth-oriented investors may focus on tax-efficient compounders. Our ranking is based on expected total returns (share price appreciation + dividends) going forward, without placing too much emphasis on whether certain names are a better fit for growth or income investors. Below is our ranking of the Brookfield public entities sorted from highest to lowest.

1. Brookfield Asset Management (BAM)

BAM operates as an asset management business that went public in December 2022 after being spun out of Brookfield Corporation (BN), following the steep discount investors used to apply to the old Brookfield parent on a sum-of-the-parts basis. Since becoming a separately traded entity, BAM has delivered an annualized return of around 30% (including dividends).

Fundamentally, BAM is a royalty on an asset management franchise. It offers investors strong earnings growth and a highly recurring, fee-based revenue stream. The company targets earnings growth of 15%–20% while paying out ~90% of earnings as dividends. Going forward, we think BAM could continue to provide investors with annualized total returns of ~15%–18%.

2. Brookfield Corporation (BN)

The parent company has a strong track record of compounding capital at a steady rate with relatively low risk, thanks to diversification and disciplined capital allocation. Over the past ten years, BN has delivered ~18% CAGR (including dividends).

BN is an alternative asset manager with exposure to real estate, renewable power, infrastructure, private equity, and credit. Unlike Blackstone (BX) or Ares Management (ARES), which focus exclusively on growing their asset management franchises with little of their own capital invested, BN invests alongside its institutional clients to ensure alignment and a long-term focus. This strategy has led to the creation of multiple subsidiaries. Looking ahead, we believe BN can conservatively deliver ~15% annualized returns over the long term.

3. Brookfield Wealth Solutions (BNT)

BNT went public in 2021 and remained under the radar for some time until its recent execution and industry-leading growth rate brought it more attention. Since its IPO, BNT has compounded at ~15% annually.

BNT is an investment-led insurance operation offering retirement services, wealth protection, and insurance products. The company targets a more growth-oriented investor base, reinvesting the majority of earnings to compound capital internally. We view BNT as an attractive long-term investment and believe it could become another compounder, potentially generating returns north of 15% over time.

4. Brookfield Infrastructure Partners (BIP.UN/BIPC)

BIP.UN’s investment case is built on owning global “monopoly-like” assets such as utilities, transport, midstream, and data infrastructure. These assets are critical to the economy, enabling the company to generate predictable earnings growth across economic cycles. Over the past ten years, BIP.UN has delivered ~13% annualized returns (including dividends).

While that may not sound exciting in the context of a strong bull market, it remains a highly respectable return, especially for conservative investors. Over the last decade, BIP.UN has also grown its dividend per share by ~6.4% annually, far outpacing inflation. We believe the company can continue to deliver ~13% CAGR over the long term.

5. Brookfield Renewable Partners (BEP.UN/BEPC)

BEP.UN is another dividend-growth play in the Brookfield portfolio and is one of the largest renewable power operators globally. Its highly diversified portfolio spans hydro, wind, solar, and other sustainable energy solutions. Over the past ten years, BEP.UN has delivered ~11.5% CAGR (including dividends).

These are long-duration assets with decades of growth potential ahead. BEP.UN’s performance is also sensitive to interest rates, with a lower-rate environment acting as a tailwind for growth projects. We believe BEP.UN could comfortably generate ~12% annualized returns over the long term with relatively low risk.

6. Brookfield Business Partners (BBU.UN/BBUC)

BBU.UN, listed in 2016, remains somewhat under the radar. The company acquires high-quality business services and industrial assets, applying operational expertise to improve profitability and cash flow—similar to a private equity model. Since inception, BBU.UN has delivered ~7% annualized returns.

Despite management’s target of 15%–20% long-term CAGR, actual results have lagged. BBU.UN depends on healthy capital markets for transactions and on operational improvements to drive value. We think investors can reasonably expect ~10% annualized returns over time.

Final Thoughts

These Brookfield entities are well-established with solid track records and long-term growth strategies. Our ranking is based purely on expected total returns, without factoring in volatility, leverage, or portfolio fit.

Although BN owns a stake in all the entities mentioned above, there is a case for holding more than one. Pairing entities can help investors achieve specific objectives. For example, an investor seeking both stability and dividend growth from BIP.UN and diversified exposure through BN—which compounds capital internally at a strong rate—may benefit from owning both.

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Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in the securities mentioned.