1 Canadian Stock I’d Buy on Any Dip

Buying a Canadian stock on any dip only works when the business earns your trust first. You need a company with multiple engines, patient capital, and a track record of turning market chaos into long-term gains. The dip becomes an opportunity when the underlying earnings power keeps compounding. A steady Canadian compounder can quietly beat a frantic trading plan. So let’s look at one to consider.

BN

Brookfield (TSX:BN) fits the “buy the dip” idea because it does not rely on one economy or one sector behaving perfectly. It owns and operates businesses across infrastructure, renewable power, real estate, and private equity, and it also earns fee income through its asset management platform. The Canadian stock tends to play offence when others play defence, which is a useful trait in a choppy year. It also benefits when big institutions keep shifting money toward private markets, where Brookfield already has massive scale.

Over the last year, the news flow around Brookfield leaned into two themes, big capital flows and big monetizations. In its latest shareholder letter, it pointed to record monetizations of about US$91 billion and highlighted a pipeline of additional asset sales that could translate into carried interest over the next three years. Carried interest can juice earnings when realizations hit, and it can arrive in waves when deal activity improves. It also reinforces the idea that Brookfield builds value patiently and then sells at moments of strength.

The other headline thread has been artificial intelligence (AI) and power demand. Brookfield framed the current moment as an infrastructure build-out, where data centres, power, and digital assets become long-duration investment opportunities. It also talked publicly about expanding AI-related infrastructure investing, which fits its long-standing habit of going where capital needs scale and long-term owners.

Earnings support

Earnings give the “buy any dip” thesis real footing. For the fourth quarter and full year 2025, Brookfield reported distributable earnings before realizations of US$1.5 billion, or US$0.63 per share, for the quarter, and US$5.4 billion, or US$2.27 per share, for the year. Total distributable earnings came in at US$1.6 billion, or US$0.67 per share, in the quarter and US$6 billion, or US$2.54 per share, for the year. Those numbers reflect the cash earnings power Brookfield emphasizes, not the accounting noise that can swing reported net income.

Asset management did a lot of the heavy lifting. Brookfield said fee-bearing capital climbed to US$603 billion, and fee-related earnings rose 22% to US$3 billion for the year. That growth can compound quietly because it does not require commodity prices to cooperate. It requires fundraising, performance, and distribution, which Brookfield has built into a machine over time. The Canadian stock also raised its quarterly dividend by 17% to US$0.07 per share, which signals confidence in cash generation, even if the yield is not the main reason to own it.

Looking ahead, Brookfield keeps pointing to a runway of realizations and a robust sales pipeline, plus continued fundraising momentum. It also expects carried interest to flow through income over the next three years as monetizations continue. While it trades at a high 133 times earnings, you’re buying quality. All while receiving a slight 0.52% dividend yield.

Bottom line

Could it be a buy for others on any dip? It could, if you want a Canadian-led global compounder with multiple income streams and a history of playing the long game. It could also be a miss for investors who want simple, predictable quarterly results, because this business will always have periods when realizations slow and the Canadian stock feels stuck.

Still, if you can handle that patience test, BN often turns dips into an entry point, not a warning sign, especially while down from 52-week highs. Its underlying platform keeps working even when headlines get noisy.

The post 1 Canadian Stock I’d Buy on Any Dip appeared first on The Motley Fool Canada.

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More reading

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• Billionaires Are Dropping Amazon Stock and Buying This TSX Stock in Bulk
• What to Expect From Brookfield Stock in 2026
• Canada’s Smart Money Is Piling Into This TSX Leader
• Billionaires Are Dropping Tesla Stock and Buying This TSX Stock in Bulk

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.