Brookfield Asset Management Preferred Units Yield Over 7.5%

Brookfield Asset Management Ltd's preferred units yield above 7.5% as shares trade at a notable discount. Investors should note the non-cumulative nature of dividends, which could impact future payments.

Date: 16-01-2025

AI Rating: 6

Earnings Per Share (EPS): This report does not provide any information regarding the EPS for Brookfield Asset Management Ltd or its preferred units.

Revenue Growth: There is no mention of revenue growth in the report, thus it cannot be analyzed.

Net Income: The report does not cover net income figures for the company.

Profit Margins: There is no data related to profit margins provided in this report.

Free Cash Flow (FCF): No information on free cash flow is included in the report.

Return on Equity (ROE): The report does not mention return on equity.

However, the report highlights that Brookfield Asset Management Ltd's preferred units (Symbol: OAK.PRB) are yielding above 7.5%, which is slightly lower than the average yield in the "Business Services & Equipment" preferred stock category (7.59%). The shares are trading at a significant 12.40% discount to their liquidation preference amount, indicating potential undervaluation compared to their peers, where the average discount is 6.76%. The non-cumulative nature of these preferred shares may create concerns for investors, as missed payments do not need to be compensated before common dividends are paid. These factors can lead to increased scrutiny regarding dividend reliability and future investment viability, influencing investor sentiment and stock price. On the day of this report, OAK.PRB shares were down by approximately 0.1%, while the common shares (Symbol: BAM) rose by about 0.9%, reflecting varying investor confidence between the preferred and common shares.

Stocks: BAM