The Best Dividend Growth Stock to Buy Now

Daniel Pronk•Aug 11, 2026

Summary

Daniel provides a comprehensive update on Brookfield Asset Management (BAM) following its strong Q2 earnings report, which highlighted record fundraising of $98 billion year-to-date and a 20% year-over-year increase in fee-related earnings. Daniel believes BAM is uniquely positioned to capture the massive capital demand required for the global AI buildout, which management estimates will require $10 trillion in capital expenditures across energy, data centers, and compute infrastructure. Daniel emphasizes that this is not a bet on specific AI models, but rather on the physical backbone of the digital economy.

Daniel discusses the strategic partnership between Nvidia and major private equity firms, including BAM, aimed at mobilizing over $500 billion for AI infrastructure. Daniel notes that energy remains a primary bottleneck for this expansion and highlights BAM's 51% ownership of Westinghouse as a key advantage. According to Daniel, Westinghouse is leading a 'nuclear renaissance' in the United States, with 14 reactors currently in various stages of construction and plans for over 100 more.

Using a Discounted Cash Flow (DCF) model, Daniel calculates a fair value of $83.65 USD for BAM shares, with a projected share price of approximately $121 USD over the next five years. Daniel predicts the stock could more than double in price while offering an 8% dividend yield on cost by that time. Daniel views any market dips as buying opportunities, given the long-term tailwinds from AI and the accelerating growth of BAM's carried interest.

BAM (Brookfield Asset Management): Daniel views this as a top-tier dividend growth stock with a 20% earnings growth target. Daniel highlights the company's $187 billion in carry-eligible capital and its exposure to AI and nuclear energy as massive catalysts. Daniel expects the dividend to grow by roughly 17% annually, potentially reaching a yield on cost of 8% within five years.

BN (Brookfield Corporation): Daniel explicitly mentions selling down a position in this stock to rotate capital into BAM. Daniel believes BAM offers more direct value and better exposure to current fundraising tailwinds. While still part of the broader ecosystem Daniel likes, the preference has shifted toward the asset management arm for better near-term growth.

NVDA (Nvidia): Daniel is highly bullish on the company following its partnership with private equity firms to fund AI infrastructure. Daniel argues that Nvidia's leadership in mobilizing $500 billion in capital confirms the unprecedented demand for AI compute. Daniel believes the supply constraints across the entire AI value chain, from chips to power, will keep the market trajectory positive for years.

Mentioned Stocks

NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel is bullish on Nvidia due to its unprecedented partnership with the world's largest private equity firms to raise $500 billion for AI infrastructure. Daniel notes that the entire supply chain remains constrained while demand continues to outweigh supply, suggesting long-term growth for the company and its partners.

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Sentiment: HOLDAction: SOLD

Reasoning: Daniel sold a position in Brookfield Corporation (BN) to rotate the capital into Brookfield Asset Management (BAM). Daniel explains that BAM currently offers better value and more direct exposure to the fundraising and fee-related earnings growth that Daniel finds attractive in the current market environment.

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BAM

Sentiment: BUYAction: BOUGHT

Reasoning: Daniel recently invested over $100,000 into BAM during a market dip, citing its 20% growth in fee-related earnings and its massive tailwinds from the AI infrastructure buildout. Daniel projects a fair value of $83.65 and a future price target of $121 within five years, driven by a 17-20% annual growth rate and a rising dividend yield on cost.

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