Alternative Investment

Brookfield Vs. Blackstone: One Clear High-Yield Winner (NYSE:BAM)

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This article was published on Dividend Kings on Wednesday, January 11, 2023.

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In 2014, a janitor named Ronald Read died and left $6 million to charity and $2 million to his family.

In 1995, a retired IRS auditor

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CNBC

Monthly Savings Inflation-Adjusted Portfolio After 20 Years Inflation-Adjusted Portfolio After 30 Years Inflation-Adjusted Portfolio After 40 Years Inflation-Adjusted Portfolio After 50 Years
$100 $77,936 $235,923 $672,169 $1,876,759
$250 $194,840 $589,809 $1,680,423 $4,691,899
$500 $389,682 $1,179,620 $3,360,849 $9,383,804
$1,000 $779,363 $2,359,239 $6,721,695 $18,767,598
$2,000 $1,558,727 $4,718,477 $13,443,387 $37,535,189
$3,000 $2,338,091 $7,077,716 $20,165,083 $56,302,791

Monthly Savings Inflation-Adjusted Portfolio After 10 Years Inflation-Adjusted Portfolio After 20 Years Inflation-Adjusted Portfolio After 30 Years Inflation-Adjusted Portfolio After 40 Years

Inflation-Adjusted Portfolio After 50 Years

$25 $5,922 $26,462 $97,690 $344,697 $1,201,281
$50 $11,845 $52,924 $195,380 $689,396 $2,402,569
$100 $23,690 $105,848 $390,760 $1,378,792 $4,805,138
$250 $59,225 $264,620 $976,900 $3,446,980 $12,012,845
$500 $118,450 $529,240 $1,953,800 $6,893,960 $24,025,690
$1,000 $236,900 $1,058,480 $3,907,600 $13,787,920 $48,051,380
$2,000 $473,800 $2,116,960 $7,815,200 $27,575,840 $96,102,760
$3,000 $710,700 $3,175,440 $11,722,800 $41,363,760 $144,154,140

Monthly Savings Inflation-Adjusted Portfolio After 10 Years Inflation-Adjusted Portfolio After 20 Years Inflation-Adjusted Portfolio After 30 Years Inflation-Adjusted Portfolio After 40 Years

Inflation-Adjusted Portfolio After 50 Years

$10 $3,211 $21,457 $125,136 $714,280 $4,061,992
$25 $8,028 $53,643 $312,840 $1,785,700 $10,154,980
$50 $16,055 $107,285 $625,680 $3,571,400 $20,309,960
$100 $32,110 $214,570 $1,251,360 $7,142,800 $40,619,920
$250 $80,275 $536,425 $3,128,400 $17,857,000 $101,549,800
$500 $160,550 $1,072,850 $6,256,800 $35,714,000 $253,874,500
$1,000 $321,100 $2,145,700 $12,513,600 $71,428,000 $507,749,000
$2,000 $642,200 $4,291,400 $25,027,200 $142,856,000 $1,015,498,000
$3,000 $963,300 $6,437,100 $37,540,800 $214,284,000 $1,523,247,000

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Megamillions

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2018 BX investor day presentation

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Brookfield investor presentation

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Brookfield investor presentation

Investment Strategy Yield LT Consensus Growth LT Consensus Total Return Potential Long-Term Risk-Adjusted Expected Return
Brookfield Asset Management 4.2% 18.7% 22.9% 16.0%
Blackstone 6.0% 8.4% 14.4% 10.1%
Vanguard Dividend Appreciation ETF 1.9% 10.2% 12.1% 8.5%
Nasdaq 0.8% 10.9% 11.7% 8.2%
Schwab US Dividend Equity ETF 3.4% 7.6% 11.0% 7.7%
High-Yield Low Volatility Super SWANs 3.8% 6.7% 10.5% 7.3%
Dividend Aristocrats 1.9% 8.5% 10.4% 7.3%
S&P 500 1.7% 8.5% 10.2% 7.2%
REITs 3.9% 6.1% 10.0% 7.0%
60/40 Retirement Portfolio 2.1% 5.1% 7.2% 5.0%

Time Frame (Years) 7.9% CAGR Inflation-Adjusted S&P 500 Consensus 12.1% Inflation-Adjusted BX Consensus 20.5% CAGR Inflation-Adjusted BAM Consensus Difference Between Inflation-Adjusted BAM Consensus And S&P Consensus
5 $1,465.25 $1,773.38 $2,544.81 $1,079.56
10 $2,146.96 $3,144.89 $6,476.08 $4,329.11
15 $3,145.84 $5,577.10 $16,480.40 $13,334.57
20 (management guidance) $4,609.44 $9,890.34 $41,939.55 $37,330.11
25 (management guidance) $6,753.99 $17,539.36 $106,728.32 $99,974.33
30 (management guidance) $9,896.29 $31,104.02 $271,603.66 $261,707.37
35 $14,500.55 $55,159.37 $691,180.62 $676,680.07
40 $21,246.95 $97,818.74 $1,758,925.66 $1,737,678.71
45 $31,132.11 $173,470.18 $4,476,137.52 $4,445,005.41
50 $45,616.37 $307,629.22 $11,390,934.55 $11,345,318.19

Time Frame (Years) Ratio Inflation-Adjusted BAM Consensus/BX Consensus Ratio Inflation-Adjusted BAM Consensus vs. S&P consensus
5 1.44 1.74
10 2.06 3.02
15 2.96 5.24
20 (management guidance) 4.24 9.10
25 (management guidance) 6.09 15.80
30 (management guidance) 8.73 27.44
35 12.53 47.67
40 17.98 82.78
45 25.80 143.78
50 37.03 249.71

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Ycharts

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Portfolio Visualizer Premium

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Portfolio Visualizer Premium

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Brookfield

Year Blackstone EPS Annual Change Blackstone Dividend Annual Change
2008 -$1.03 NA $1.05 NA
2009 $0.63 161% $1.20 14%
2010 $1.26 100% $0.62 -48%
2011 -$0.57 -145% $0.52 -16%
2012 $1.77 -411% $0.72 38%
2013 $3.07 73% $1.34 86%
2014 $3.76 22% $2.12 58%
2015 $1.82 -52% $2.73 29%
2016 $2.00 10% $1.52 -44%
2017 $2.81 41% $2.70 78%
2018 $2.17 -23% $2.15 -20%
2019 $2.31 6% $1.95 -9%
2020 $2.65 15% $2.26 16%
2021 $4.77 80% $4.06 80%
Annual Volatility 155% 99%
Max 161% 86%
Min -411% -48%
Median 15% 16%
Average -9% 20%

Year Brookfield Asset Management EPS Annual Change
2008 $0.35 NA
2009 $0.25 -29%
2010 $0.80 220%
2011 $1.00 25%
2012 $0.68 -32%
2013 $1.11 63%
2014 $1.67 50%
2015 $1.21 -28%
2016 $0.83 -31%
2017 $0.72 -13%
2018 $1.82 153%
2019 $1.39 -24%
2020 $2.62 88%
2021 $3.20 22%
Annual Volatility 84%
Max 220%
Min -32%
Median 22%
Average 36%

Annual Volatility 53%
Max 46%
Min -26%
Median 9%
Average 11%

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(Source: FactSet Research Terminal)

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FAST Graphs, FactSet

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