Some dividend stocks are at the top of their game right now. These dividend powerhouses aren't just generating record earnings and cash flows on the back of powerful secular megatrends -- they are aggressively building road maps to grow their businesses and return large chunks of profits to shareholders through big dividends.
Brookfield Asset Management (BAM 3.45%) is one such income machine and a top dividend stock for 2026 and beyond. Because Brookfield distributes almost 90% of its earnings to shareholders in the form of dividends, its earnings growth projections for the next five years should appeal hugely to income investors.
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A $1 trillion-dollar goal
Brookfield Asset Management is one of the most compelling examples of a misunderstood business. Investors often think asset management is a risky business and correlate it with high-stakes volatility. In reality, Brookfield's business is closer to a toll booth model, where the company earns fees under long-term contracts, offering solid earnings stability.
Brookfield manages capital for large institutional clients such as pension funds, insurance companies, and sovereign wealth funds. It raises capital, deploys it into assets through specialized funds, and charges clients fees for managing their capital. So, Brookfield's earnings from fees keep rolling regardless of the economic climate.
Brookfield currently has over $1 trillion in assets under management (AUM). Of that, nearly $580 billion is fee-bearing capital, or the capital that earns fees. Brookfield expects to double that to over $1 trillion by the end of the decade and is targeting 20% annual earnings growth through 2030. It's a doable goal, given the significant opportunities ahead.
The biggest growth catalysts for 2026
Brookfield deploys capital across large asset classes that underpin the economy. They include five verticals: utilities, transport, midstream energy, data, and communications; renewable energy; real estate; private equity; and credit.
The three biggest secular megatrends -- digitalization, deglobalization, and decarbonization -- are projected to attract trillions of dollars of investment as they reshape the global economy. The artificial intelligence (AI) data center buildout, for example, is one of the biggest growth catalysts for Brookfield. McKinsey estimates that data centers will require nearly $7 trillion in capital by the end of 2030 to keep pace with the unprecedented demand for compute power.
Brookfield is already positioned to win, having signed two mega deals in recent months. The first is the launch of a $100 billion global AI infrastructure fund in partnership with tech giant Nvidia and the Kuwait Investment Authority to build AI factories and data center infrastructure. The other is a $20 billion joint venture with Qatar-based Qai to build AI infrastructure in Qatar.
NYSE: BAM
Key Data Points
Decarbonization is another significant growth lever for Brookfield -- it owns one of the world's largest renewable energy platforms -- as is credit, the vertical that also constitutes the largest portion of the company's capital. In less than a decade, credit has grown from nothing to a $1.5 billion fee stream for Brookfield. The credit group lends money and is laser-focused on asset-based finance for 2026. Brookfield expects its credit capital to grow by 2.5 times between 2025 and 2030.
How much money could you make if you were to buy Brookfield stock today?
Business is booming for Brookfield. It raised a record $30 billion in capital in the third quarter and deployed $23 billion, driving its fee-related earnings up by 17% year over year to an all-time high of $754 million.
Five years ago, Brookfield set a goal to double its earnings, and it delivered. Today, the Canada-based company is gearing up for its next five-year chapter, targeting another 100% growth in earnings by the end of the decade. And because Brookfield pays nearly all its earnings as dividends, investors can expect bigger dividends year after year if they buy the stock today.
Just how big, you may ask? Brookfield's dividend per share could grow by 15% or more every year between 2026 and 2030. With the stock also yielding a solid 3.5%, you can expect double-digit annualized returns from your investment in Brookfield Asset Management in 2026 and beyond, making it a top dividend stock to buy and hold.
