Here's Why Brookfield Asset Management Stock Is a Buy Before August 1

Don't wait until Brookfield Asset Management reports second-quarter earnings in early August to buy in

What does Brookfield Asset Management do

As its name implies, Brookfield Asset Management is an asset manager

That basically means it collects money from other investors and then invests that money, for a fee, on their behalf

The total fees Brookfield Asset Management charges are based on the dollar value of the assets it oversees, so the more money it manages, the more money it makes as a

Image source: Getty Images

Without getting too deep into the weeds, that will, roughly speaking, lead to a doubling of the company's revenues and greatly increase its earnings

It has five platforms to grow, too, so there are multiple levers here

The list of growth opportunities includes renewable power, infrastructure, real estate, private equity, and credit

Brookfield Asset Management believes that the clean energy transition, the increasing use of nology, and the move to reshore operations and manufacturing will all be supported by big-picture trends

Every quarter gets Brookfield Asset Management closer to the goal Brookfield Asset Management will interest a broad range of investors

And every set of quarterly results it reports will show its gress toward the long-term goals it has set

To be fair, no single quarter is ly to be materially more important than any other

However, every quarter that goes by is another step in the company's gress

Miss too many steps and you could miss out on a lot of the journey, including large dividend hikes and stock price increases that could result from those hikes

At some point, Wall Street is going to catch on to the fact that Brookfield Asset Management is steadily working toward its long-term goals

And when that happens the s could be afforded a much higher valuation, leading to a much lower dividend yield

BAM data by YCharts Both of those U

Asset managers are much larger companies than Brookfield Asset Management

But that may not be the case forever, assuming Brookfield Asset Management gets close to its growth goals

For long-term investors with an interest in dividend income, it bably doesn't make sense to wait for more and more good news to pile up quarter after quarter

Don't miss the opportunity with Brookfield Asset Management The asset management, all others, waxes and wanes over time

But Brookfield Asset Management has been outperforming its larger peers over the past year

And it still has a higher yield backed by what is ly to be a dividend that is growing very rapidly

Given the fact that Brookfield Asset Management's yield is still so much higher than those of its U

Peers, acting now seems a better option than waiting for more good news to come out when the company reports earnings

Reuben Gregg Brewer has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Blackstone

The Motley Fool recommends Brookfield Asset Management

The Motley Fool has a disclosure policy.