Investment Q&A

Q: I am hoping you can shed some light on the best way to receive dividends from Brookfield. I have used BAM in my example but I think all their companies work the same way.

The dividends are paid in US dollars. As a Canadian resident but holding the shares on a US exchange, it seems that I will be paid first in Canadian dollars and then the dividends will be converted to $US. That is unless I write my broker and ask for the dividends in US dollars directly. However, if I hold the shares on the TSX, the dividend will still be paid in US dollars and then converted unless I ask the company to pay me in Canadian dollars!

What is not clear is if there are any conversion fees attached to any of these options. What is the best/cheapest /easiest way to receive Brookfield dividends? Can it be done without having to contact either my brokerage or the company?

I tried to ask the company but their response was quite unclear.

Appreciate your insight.

Paul F.

Q: Hi Peter/Ryan, In a TFSA if you could hold only one of theses BAM or BN which one would it be and why. Thanks

Q: Hi . If I buy BAM shares on the NYSE, and hold them in my cash account, will I be able to keep the dividends in $US. and benefit from the Canadian dividend tax credit? I am a Canadian citizen and reside in Canada. Thanks. Ben

Q: What is the difference between these 2 stocks if held in RRSP? The US stock has a dividend of 4.1% and the Canadian stock has 2.99% dividend.

Q: HELLO 5I
I have some cash in my USD RIF and want to add at one the above for a long term hold. Which one would you add to?

Thanks

Q: It seems that the BAM stock had a split on Dec 12 2022.

4 old BAM shares gave rise 1 BN share & 4 new BAM shares.

On Dec 9 ( a Friday), the Value of old BAM was us$43.15

On Dec 12 (the next Monday), BN was valued at US$33.64 and new BAM was valued at US$32.40.

So the 4 shares valued at us$172.60 before the split were worth US$163.24 after the split.

FYI, I am using avg prices as reported on Google Finance. It seems like a 5% drop on Day 1.

Questions:

1. Is my calculation correct?
2. are the prices of BAM and BN on Dec 12 2022 dependent on the Dec price on Dec 9 2022 or determined well in advance?

Thanks

Q: December 2022 sold BBU and BBUC for tax loss using BN as a proxy. Now after 30 days considering whether best move is to buy back BBU or add to BAM or BIPC or standstill for awhile. BN is 4.5%, BEP is 3.55%, BIP is 2.52% and BAM is .97% of my portfolio where the investment objective is to hold a growth-leaning dividend-paying balanced portfolio. What would be your choice?

Q: Hi Peter, I'm limited in cash at the moment and would like to start a position with either BN or BAM. If only one could be picked, which one of these would you favor for a TFSA and why? Thanks, Nick

Q: Dear 5i team.

Is there an ETF that holds multiple Brookfield Companies to spread out individual entity risk? Is there a combo of Brookfield holdings that accomplish something close that saves the MER?

Many thanks for your help.

Q: my public service announcement

NEVER, EVER, EVER BUY ANY BROOKFILED COMPANY IN ANY TAXABLE/NON REGISTERED ACCOUNT

EVER

i own several of them and have generally been happy with the mgmt and results

but, between delayed tax reporting, offshore, foreign income t5013 reporting; t1135 reporting AND basically obtuse overall reporting, i recco you put them in a registered account where all that nonsense 'disappears' into the ether of non reporting............

thank me later

merry christmas

Q: Hi,

Now that the dust has settled and the BN/BAM spinoff is complete, I have the BN shares in my accounts but wanted to confirm the split and avg. costs showing before and after in my brokerage account and if its correct. Sometimes when they manually update avg. prices for these kind of things, they enter it wrong.

Before spinoff and after spinoff shares and avg. cost:

Account 1: BAM 393 shares @39.09 ------- BN 393 shares @33.11, BAM 98 shares @29.50

Account 2: BAM 601 shares @51.60 ------- BN 601 shares @33.11, BAM 150 shares @29.50

Account 3: BAM.TO 151 shares @44.97 ---- BN.TO 151 shares @45.22, BAM 37 shares @40

Account 4: BAM.TO 150 shares @65.64 -----BN.TO 150 shares@45.22, BAM 37 shares @40


1. For account 3 and 4, if I had 151 shares and 150 shares and divide by 4 to get new BN shares, I get 37.75 and 37.50 shares after. Do brokerages usually round down? I thought I would have gotten 38 shares of BN after the spinoff.

2. When I compare my cost basis before and after, it should be the same correct? Looks like they assigned these prices of $33.11, $29.50, $45.22 and $40 to each of my BN and BAM shares after. Where did they get these from and if incorrect, what should they be after for BN and BAM?

3. When I look at account 2:
Before: BAM 601 x $51.60 = $31,011.
After: BN 601 x 33.11 = $19,899, BAM 150x$29.50= $4,425 (Total = $24,324)
Why did my cost basis go down from $31k to $24k? Something is not correct here.

I would like to contact my brokerage and have them update my avg. cost for BN and BAM but wanted to clarify these few things before I do.

Thank you for your help!

Q: Referring to my earlier question today, would using some the tax loss sale proceeds from selling BBU to buy some more BAM violate CRA similarity rules on repurchasing?

Q: I have been following the Questions and have been a keen reader of the opaque notices and statements from Brookfield . I own units in all the subsidiaries mentioned above too. So I am trying to keep position size of each in mind when I look at the BN holding corp and allocate it to the various sectors, Months ago, before the split you had answered a question confirming that the BAM.A sectoral breakout was 39% financial, 35% RE, 16% industrial, 10% energy?? Does this breakout still apply to BN and/or BAM or is there a new breakout given the spinout of the new corporation.

Q: I would like to add to either of the recent spinoffs of Brookfield (BN, BAM). Which of the two do you feel has the most upside for 3 to 5 years. Thank You.

Q: When it comes to the new BAM and BN, what risk weighting out of 10 would you assign to each of them???......where 10 would be low risk and 1 would be very high risk?......Thanks for your take as this will assist me in determining my weighting of money in each of BAM and BN stock postions........Tom

Q: I am a retired dividend growth investor. I have large long term positions in BEP and BIP. which have done very for me. I have been watching the spin-off of BAM with interest and particularly like their targeted growth rate of 15-20% for distributions. I am concerned with overlap given my current large holding of BEP and BIP. However having waded through the documents it looks like BAM's holdings of BEP and BIP are modest at 25% of 48% and 27% respectively. It appears to me that buying BAM would give me exposure to Private Equity/Real Estate and Credit as well as a heavy weighting to fee related earnings - which I don't have now and that the overlap of BEP and BIP holdings is not that big a deal. Is this a fair conclusion??

Also - in your response to Chris on 12/14 you quote a dividend rate of $1.32 - can you please advise if that is $US or $CAD. I assume it is for the BAM on the TSX??


Thanks

Q: I am a Brookfield fan but a retired income investment. However I mamage two RESPs which will not need to make withdrawals for at least 12 years. It seems a no brainer to invest in BAM in these two accounts right now given the misunderstandings about them. My question is should it be BAM or BN?

Q: hi
any idea what is going on with the price of BAM. it continues to slide down? are investors waiting for price decline enough for a larger yield??
cheers, chris

Q: These two have almost exactly the same yield going forward. Which do you see as having better dividend growth over the next ten years?

Q: With the split of BAM.A, would you transfer the new BAM to an Income Portfolio as it is more a dividend paying stock but keep BN in a Balance Portfolio as it is more growth-eee?........Tom