This Stock-Split Stock Sees Unstoppable Growth Ahead
Brookfield Asset Management (NYSE: BAM) recently completed a unique stock split. It was announced as a 3-for-2 stock split. However, instead of receiving additional shares of the same company for those they owned, investors got one share of its asset manager for every four of the company they already owned.
Brookfield completed this split so that its investors would have direct exposure to its asset management business's dividend income and growth. CEO Bruce Flatt recently discussed the growth it has already locked up at a recent industry conference.
Brookfield believes it can grow its asset management business's fee-related earnings (FRE) at a 15% to 20% annual rate. It has high confidence in that view because most of that growth is already locked up. CEO Bruce Flatt pointed out:
Source Fool.com
