This undervalued dividend stock has the potential to yield double-digit returns through 2026 and beyond.
Right now, some dividend stocks are performing exceptionally well. They’re seeing record earnings and cash flow, benefiting from strong long-term megatrends. Moreover, these companies are developing plans for growth, looking to share considerable profits with their shareholders through generous dividends.
Brookfield Asset Management is an example of a solid income source, being the top dividend stock since 2026. Brookfield allocates almost 90% of its profits to shareholders as dividends, which makes its projected earnings growth over the next five years particularly appealing to income-focused investors.
$1 trillion goal
Brookfield Asset Management serves as a notable example of a misunderstood enterprise. Many investors see wealth management as a high-risk business linked to volatility. However, Brookfield’s model resembles a tollbooth setup, where it earns fees based on long-term contracts, enabling it to generate stable revenue.
The firm manages capital for significant institutional clients, such as pension funds and insurance companies. They gather capital, invest in assets via specialized funds, and charge fees for management. This model allows Brookfield’s fee income to grow irrespective of broader economic conditions.
Currently, Brookfield manages assets exceeding $1 trillion, with approximately $580 billion being fee-bearing capital. The company anticipates this amount will double by the end of the decade, targeting 20% annual revenue growth by 2030. This seems feasible given the substantial opportunities ahead.
The biggest growth booster in 2026
Brookfield distributes capital across significant asset classes that bolster the economy, including sectors like utilities, transportation, midstream energy, data, communications, renewable energy, real estate, private equity, and credits.
Three major trends—digitization, deglobalization, and decarbonization—are expected to attract trillions in investments while reshaping the global economic landscape. One notable growth driver for Brookfield is the rise of AI data centers, with McKinsey estimating a need for nearly $7 trillion in capital by the decade’s end to satisfy skyrocketing demand for computing power.
Brookfield is well-positioned, having secured two significant contracts recently. One involves partnering with tech giants to launch a $100 billion global AI infrastructure fund, including collaboration with Nvidia and the Kuwait Investment Authority to develop AI factory and data center infrastructure. Additionally, a $20 billion joint venture with a Qatar-based firm aims to advance AI infrastructure in Qatar.
Decarbonization’s Role
Decarbonization represents another critical growth factor for Brookfield, which has become one of the leading renewable energy platforms globally. Additionally, the credit vertical, which forms a major part of the company’s capital, has seen Brookfield evolve from zero to $1.5 billion in fee income over nearly ten years. The credit group focuses on asset-based finance and anticipates its capital growth will increase 2.5 times from 2025 to 2030.
Potential Earnings from Brookfield Stock
Brookfield’s performance is robust. In the third quarter, the company raised a record $30 billion in capital, invested $23 billion, and achieved record fee-related revenue of $754 million, marking a 17% year-over-year increase.
Five years back, Brookfield aimed to double its revenue—and it did. Now, the Canadian firm is gearing up for the next five years with a fresh goal of growing its revenue by another 100% by the end of 2020. Given that Brookfield disburses nearly all profits as dividends, investors purchasing the stock now can anticipate larger dividends each year.
But how significant could that be? Brookfield’s dividend per share might rise by over 15% annually from 2026 to 2030. With a stable yield of 3.5%, investing in Brookfield Asset Management could yield double-digit returns beyond 2026, making it an attractive dividend stock for the long haul.
