WHERE I’D INVEST $10,300 IN THE TSX TODAY

With the TSX Composite Index trading near record highs despite persistent macroeconomic fragility, including global trade friction, interest rate uncertainty, and cautious consumer sentiment, it’s tough to know what to do with your money.

But it’s also not the time to freeze. If I had $10,300 to invest in the TSX today, I’d focus on well-run, large-cap companies with strong balance sheets, defensive moats, and solid long-term fundamental growth prospects. In this article, I’ll highlight a top TSX-listed financial stock that could help you navigate volatility and thrive in the years ahead.

Brookfield Asset Management stock

To put my money to work in today’s uncertain market, I’ll lean toward a business that offers strength, income, and global growth. That’s why I’d pick Brookfield Asset Management (TSX:BAM) for my over $10,000 investment on the TSX today.

It’s an alternative asset management giant with more than US$1 trillion in assets under management. The company operates across five key sectors — real estate, infrastructure, renewable power, private equity, and credit.

After rallying by 43% over the last 12 months, BAM stock is trading at $79.45 per share, with a market cap of $130 billion. It also pays a quarterly dividend with a 3% annualized yield, adding a layer of passive income to go with its long-term growth focus.

What’s driving BAM stock higher in 2025

Part of what’s helped BAM stock climb sharply in recent months is how effectively it continues to attract capital. In the first quarter of 2025 alone, the company raised US$25 billion, pushing its total to over US$140 billion in the past year. That kind of fundraising helped lift its fee-bearing capital by 20% YoY (year-over-year) to US$549 billion.

During the quarter, the company deployed US$16 billion across sectors like renewable power, infrastructure, private credit, and real estate. It’s important to note that these areas have solid long-term growth potential, as they’re related to big global trends like energy transition and artificial intelligence (AI)-driven digital infrastructure.

That combination of capital inflow and strategic deployment seems to be playing a big role in boosting investors’ confidence, which has driven BAM stock higher on the TSX.

Robust earnings growth

In the first quarter, BAM’s fee-related earnings rose 26% YoY to US$698 million, while total revenue jumped more than 22% from a year ago. Similarly, its earnings climbed 17.6% YoY to US$0.40 per share. More importantly, its profit margins also remained high, with the company reporting an adjusted net profit margin of above 60%.

Strong growth outlook

What’s even more compelling about Brookfield Asset Management is the size of its undeployed capital. Notably, it currently has US$119 billion in uncalled fund commitments, giving it the flexibility to seize new opportunities without delay. That level of firepower sets it apart from most TSX stocks today.

That’s why, for investors looking to put $10,300 to work today, BAM stock checks all the right boxes, including dependable growth, solid income from dividends, and a long-term vision.

The post Where I’d Invest $10,300 in the TSX Today appeared first on The Motley Fool Canada.

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 Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

2025-05-22T20:44:10Z