RE:Someone help me understand this - Is this a growth stock?YoungInvestor91 wrote: According to TSX, this stock has a P/E ratio of 137.600. The stock does not seem to pull back however, so is it really expected to grow much further?
I'm a relativley new investor and deciding weather or not I should buy 100 shares for the long term.
Thoughts / advice?
Thanks!
From my perspective this is a long term income stock, not a growth stock. The P/E ratio will be skewed depending on the various asset dispositions they do in a given year so it's not a reliable indicator. I think you need to look at this from a view of, do you trust the Brookfield management group, to make the right investments. If you do then you will trust their projections of annual increases in the dividend of, if memory serves me, 7 to 11% over the next 3 years. The dividend increases will also drive the share price since the market will likely keep the dividend in the 4 to 5% range. To me this is a "sleep at night" investment that keeps on giving.
Cheers.