Brookfield Corporation sets fixed dividend rate for Series 42 Shares and offers conversion option to Series 43 Shares.
Quiver AI Summary
Brookfield Corporation announced the fixed dividend rate for its Cumulative Class A Preference Shares, Series 42, which will be set at an annual rate of 5.658% (or $0.353625 per share per quarter) for the five-year period starting July 1, 2025. Shareholders can choose to convert their Series 42 Shares into Series 43 Shares by June 16, 2025, with the Series 43 Shares offering a floating dividend rate calculated at 2.84% above the yield on three-month Government of Canada treasury bills. The automatic conversion of Series 42 Shares to Series 43 Shares will occur if fewer than 1,000,000 Series 42 Shares remain outstanding after June 30, 2025. Currently, there are 11,887,500 Series 42 Shares in circulation. The Toronto Stock Exchange has conditionally approved the listing of the Series 43 Shares pending Brookfield’s compliance with listing requirements.
Potential Positives
- Brookfield has announced a fixed dividend rate of 5.658% on its Cumulative Class A Preference Shares, Series 42, providing income stability to shareholders over the next five years.
- The option for shareholders to convert Series 42 Shares into Series 43 Shares allows for flexibility and potential appreciation based on market conditions.
- The conditional approval for listing Series 43 Shares on the TSX indicates positive recognition from the exchange, enhancing liquidity and accessibility for investors.
- Brookfield's commitment to delivering consistent returns of 15%+ annually for over 30 years strengthens its reputation as a reliable investment firm.
Potential Negatives
- Reduction in dividend rates for Series 43 Shares compared to Series 42 Shares may indicate decreased shareholder value and lower potential returns.
- Automatic conversion of Series 42 Shares to Series 43 Shares could raise concerns about liquidity and marketability for investors.
- The requirement for Brookfield to maintain a minimum of 1,000,000 outstanding Series 42 or Series 43 Shares complicates shareholder exit strategies and creates uncertainty for investors.
FAQ
What is the fixed dividend rate for Series 42 Shares?
The fixed annual dividend rate for Series 42 Shares is 5.658%, payable quarterly at $0.353625 per share.
When can investors convert Series 42 Shares to Series 43 Shares?
Investors can convert Series 42 Shares to Series 43 Shares until 5:00 p.m. on June 16, 2025.
What will be the quarterly dividend rate for Series 43 Shares?
The quarterly dividend rate for Series 43 Shares will be 1.38227% for the period from July 1 to September 30, 2025.
How many Series 42 Shares are currently outstanding?
There are currently 11,887,500 Series 42 Shares outstanding.
What happens if Series 42 Shares drop below 1,000,000?
If fewer than 1,000,000 Series 42 Shares are outstanding, they will be automatically converted to Series 43 Shares on June 30, 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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We have seen 341 institutional investors add shares of $BN stock to their portfolio, and 377 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
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To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$BN Analyst Ratings
Wall Street analysts have issued reports on $BN in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Morgan Stanley issued a "Overweight" rating on 05/19/2025
To track analyst ratings and price targets for $BN, check out Quiver Quantitative's $BN forecast page.
Full Release
All amounts in Canadian dollars unless otherwise stated.
BROOKFIELD, NEWS, June 03, 2025 (GLOBE NEWSWIRE) -- Brookfield Corporation (“Brookfield”) (NYSE: BN, TSX: BN) today announced that it has determined the fixed dividend rate on its Cumulative Class A Preference Shares, Series 42 (the “Series 42 Shares”) (TSX: BN.PF.G) for the five years commencing July 1, 2025 and ending June 30, 2030.
If declared, the fixed quarterly dividends on the Series 42 Shares during the five years commencing July 1, 2025 will be paid at an annual rate of 5.658% ($0.353625 per share per quarter).
Holders of Series 42 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 16, 2025, to convert all or part of their Series 42 Shares, on a one-for-one basis, into Cumulative Class A Preference Shares, Series 43 (the “Series 43 Shares”), effective June 30, 2025. The quarterly floating rate dividends on the Series 43 Shares will be paid at an annual rate, calculated for each quarter, of 2.84% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2025 to September 30, 2025 dividend period for the Series 43 Shares will be 1.38227% (5.484% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.3455675 per share, payable on September 30, 2025.
Holders of Series 42 Shares are not required to elect to convert all or any part of their Series 42 Shares into Series 43 Shares.
As provided in the share conditions of the Series 42 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 42 Shares outstanding after June 30, 2025, all remaining Series 42 Shares will be automatically converted into Series 43 Shares on a one-for-one basis effective June 30, 2025; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 43 Shares outstanding after June 30, 2025, no Series 42 Shares will be permitted to be converted into Series 43 Shares. There are currently 11,887,500 Series 42 Shares outstanding.
The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 43 Shares effective upon conversion. Listing of the Series 43 Shares is subject to Brookfield fulfilling all the listing requirements of the TSX.
About Brookfield Corporation
Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.
We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).
For more information, please visit our website at www.bn.brookfield.com or contact:
| Media: | Investor Relations: | |
| Kerrie McHugh | Katie Battaglia | |
| Tel: (212) 618-3469 | Tel: (416) 359-8544 | |
| Email: [email protected] | Email: [email protected] |
