Brookfield Asset Management announces best quarter in history and increases dividend by 8%

Brookfield Asset Management (NYSE: BAM) pulls full blast. The alternative asset manager released bumper figures for its fourth quarter and offered investors a dividend hike on the morning of February 11.

Brookfield’s fourth quarter was best ever in net income and funds operations (FFO) shot through the roof. Here are the key figures for the quarter, all year:

  1. Revenue fell 4% to $ 17.1 billion.
  2. Net income jumped 10.8% to $ 1.8 billion.
  3. The FFO jumped 74% to $ 2.1 billion.

The record quarter puts Brookfield on track for a strong 2021. Importantly, Brookfield invested $ 44 billion in 2020 and currently has an even larger amount, which should lead to the company’s “next phase of growth” in 2021.

Image source: Getty Images.

Thanks to strong commission-based earnings and gains from asset disposals in the fourth quarter, Brookfield ended 2020 with a record $ 3.1 billion in cash available for distribution and / or reinvestment (CAFDR ), reflecting the resilience of its cash flows.

In the face of liquidity, management announced an 8% increase in its quarterly dividend. The stock is currently earning 1.2%.

Brookfield expects 2021 to be a solid year. “We recently started our next flagship fundraiser, we are making progress on significant achievements from earlier era funds, and the underlying business performance is good and improving,” said CEO Bruce Flatt. Brookfield is currently raising funds for its fourth flagship real estate fund and plans to launch flagship private equity and infrastructure funds later this year. Earlier this year, Brookfield also revealed plans to take his real estate company, Brookfield Real Estate Partners (NASDAQ: BPY), private.

Brookfield had $ 77 billion in deployable capital at the end of the fourth quarter. In its letter to shareholders, management outlined some of the new areas in which it wishes to invest, such as:

  1. Reinsurance.
  2. Invest in technology.
  3. Zero carbon applications.

If Brookfield Asset Management could generate a record FFO of $ 5.2 billion in one year as nearly 20% of its operations were closed due to the COVID-19 pandemic, it should be able to deliver results even stronger going forward as global economic activity picks up. The stock is up about 3% year-to-date.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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