1 Practically Perfect Canadian Stock Down 19% to Buy and Hold Forever

By Amy Legate-Wolfe at The Motley Fool Canada

Buying a great stock after a pullback can be one of the simplest ways to improve your long-term return. A lower share price can give investors a better entry point, a higher margin of safety, and more upside when sentiment turns. Of course, not every beaten-down stock deserves a second chance. The trick is finding a business that still has strong assets, growing cash flow, and a future that looks better than the market seems to believe right now. Brookfield (TSX:BN), down about 19% from its 52-week high on the TSX, looks like one of those names.

BN

Brookfield stock gives investors exposure to some of the most durable parts of the global economy in one place. Through its asset management arm, wealth solutions business, and operating interests in infrastructure, renewable power, private equity, and real estate, it has built a giant platform around real assets and long-duration cash flows. That kind of setup can look especially attractive when markets feel jumpy, because Brookfield stock doesn’t need one single business line to carry the whole story.

Over the last year, Brookfield stock kept giving investors reasons to pay attention. In 2025, it raised US$112 billion, deployed US$126 billion of capital, and completed a record US$91 billion of asset sales. It also pushed forward on some big strategic themes, including the launch of its inaugural artificial intelligence (AI) infrastructure fund, progress on the Just Group acquisition in the U.K., and partnerships tied to hydroelectric power, AI factories, and nuclear development in the United States.

Brookfield stock has the size and structure to keep finding growth even when one corner of the economy cools off. Real estate may be slower for a while. Deal markets may pause. Interest rates may shift. Yet Brookfield stock still has multiple engines running at once. That diversification doesn’t remove risk, but it does make the business a lot harder to knock off course for long.

Into earnings

The latest earnings backed up that bullish case. For 2025, distributable earnings before realizations rose 11% to US$5.4 billion, or US$2.27 per share. Total distributable earnings came in at US$6 billion, while net income attributable to Brookfield stock shareholders more than doubled to US$1.3 billion from US$641 million in 2024. In the fourth quarter alone, distributable earnings before realizations reached US$1.5 billion. Those are not the numbers of a company losing momentum.

Valuation is a little trickier with Brookfield stock because investors often look beyond plain earnings and focus on cash flow, asset values, and the earnings power of the broader platform. Even so, the stock still looks appealing after the pullback. Most recently, Brookfield stock carried a 52-week high of $68.44, and recently traded at $55 at writing. The dividend is tiny at roughly 0.7%, so this is not an income play first. But Brookfield did raise that dividend 17% in February and repurchased more than US$1 billion of shares in 2025, which suggests management believes the stock remains undervalued.

The future outlook still looks strong. Brookfield finished 2025 with record deployable capital of US$188 billion, fee-bearing capital of US$603 billion, and management pointing to another year of meaningful growth, helped by flagship fundraising and newer themes like AI infrastructure. There are risks, of course. Brookfield stock is exposed to global markets, financing conditions, and the occasional stretch of investor impatience. But for a forever stock, those risks look manageable beside the quality of the assets and the scale of the platform.

Bottom line

If I wanted one practically perfect Canadian stock to buy after a meaningful dip and hold for the long haul, Brookfield stock would be near the top of the list. It has world-class assets, a proven capital allocation machine, and a business model built to adapt. The stock may not always move in a straight line, but that pullback looks more like an opportunity than a warning sign.

The post 1 Practically Perfect Canadian Stock Down 19% to Buy and Hold Forever appeared first on The Motley Fool Canada.

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

2026