Down 25%? This Canadian Blue Chip Looks Like a Deal

If you’ve been investing over the last few years, it can be easy to see that when it comes to investing, it’s the solid, long-term investments that tend to shine. But that doesn’t mean you need to ignore trends either.

That’s why infrastructure has been so popular. When it comes to power, communication, and other essentials there simply isn’t a better investment. That’s why today we’re going to look at this opportunity, and a blue-chip way to play that rebound without buying only one pipeline, utility, or real estate stock.

BAM

Brookfield Asset Management (TSX:BAM) is one of the world’s largest alternative asset managers. BAM stock invests for clients across infrastructure, renewable power, real estate, private equity, credit, and insurance-linked strategies. In short, it earns fees by managing capital across hard assets and private markets. So investors get global infrastructure, with one winner.

Over the last year, BAM stock continued leaning into big themes like AI infrastructure, credit, renewable power, and private wealth. In fact, assets under management (AUM) now sit around US$1.2 trillion. Furthermore, fee-bearing capital reached about US$613.8 billion in the first quarter of 2026, up 12% year over year.

Into earnings

So let’s dig deeper into those earnings. During the first quarter of 2026, BAM stock raised US$21 billion in the first quarter, having already secured US$67 billion year to date, putting it on pace for another strong fundraising year. It reported net income of US$586 million, as fee-related earnings rose 11% year over year to US$772 million, or US$0.48 per share. 

And yet, the valuation continues to look strong, especially as BAM stock is down from all-time highs. At writing, BAM stock trades at 31 times earnings, down 25% from 52-week highs of about $88. So not only are investors getting a deal, with analysts estimating a one-year target of $77.50, but a bargain for a 4.1% dividend yield as well. Even that can bring in ample income with just $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTBAM$66.88104$2.74$284.96Quarterly$6,955.52

Looking ahead

This is the great news.  The future case rests on the need for infrastructure. AI needs power and data centres, governments need upgraded grids, and companies need logistics, ports, renewable energy, and private credit. BAM sits in the middle of all these themes, with scale that gives it access to smaller firms that competitors cannot even touch.

Furthermore, if interest rates remain steady, or even come down, this makes private assets more attractive, supports deal activity, and improves valuations across real estate and infrastructure.

Bottom line

All together, BAM stock looks like a solid blue-chip investment to watch as infrastructure continues to feel out of favour. The simple bottom line is that infrastructure is not just here to stay, it’s expanding exponentially through multiple streams. And BAM stock will be there to benefit from each and every one, on a global scale. So now might be the best time for investors to buy in at a 25% discount, with a 4.1% yield.

The post Down 25%? This Canadian Blue Chip Looks Like a Deal appeared first on The Motley Fool Canada.

Should you invest $1,000 in Brookfield Asset Management right now?

Before you buy stock in Brookfield Asset Management, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Brookfield Asset Management wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• Revealed: Here’s the Only Canadian Stock I’d Refuse to Sell
• 2 Canadian Stocks Positioned to Surge as 2026 Unfolds
• A 4.1% Dividend Stock Is My Top Pick for Immediate Income
• The Best Sustainable Stocks for Passive Income in 2026
• 1 Magnificent TSX Dividend Stock Down 25% to Buy and Hold for Decades

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.