TORONTO – Brookfield Asset Management Inc. (TSX:BAM.A) has announced a six per cent increase in its cash dividend along with a three-for-two split of its class A shares, saying the move is aimed at improving liquidity and ensuring its stock remains accessible to individual shareholders.
Brookfield announced after markets closed that the split would be implemented by way of a stock dividend whereby shareholders will receive half a Brookfield Class A Share for each Class A and Class B Share held.
The stock dividend will be payable May 12 to shareholders of record at the close of business May 5,with fractional shares being paid in cash based on the closing price of the Class A Shares on the Toronto Stock Exchange on the record date.
Since the company is ascribing no monetary value to the stock dividend, it will not be taxable in Canada or the United States, although any cash received for fractional shares will be taxable.
Meanwhile, Brookfield is adjusting its dividend policy to reflect the additional number of common shares that will be outstanding. Meanwhile, it also expects to begin paying a post-split quarterly dividend of 12 U.S. cents per share or 48 U.S. cents per annum starting June 30.
That would amount to 72 U.S. cents per annum based on the pre-split number of shares outstanding, an increase of some six per cent, it said.
Brookfield Asset Management Inc. is a global asset manager with more than $200 billion in assets under management.
On the Toronto Stock Exchange, Brookfield Asset shares closed up $1.69 or 2.44 per cent at C$71.01 on Wednesday.