Brookfield Announces Three-For-Two Stock Split; Increases Dividend 6%

(RTTNews) - Brookfield Asset Management Inc (BAM, BAM-A.TO) on Wednesday said its board approved a three-for-two stock split of its outstanding class A shares.

The company said the split will be implemented by way of a stock dividend whereby shareholders will receive one-half of a Brookfield class A share for each class A and Class B share held. The dividend will be payable on May 12 to shareholders of record on May 5.

Brookfield said it is undertaking the stock split to ensure its shares remain accessible to individual shareholders and to improve the liquidity of the shares. The stock split will not dilute shareholders' equity.

The company is ascribing no monetary value to the stock dividend payable to shareholders and therefore the stock dividend will not be taxable in Canada or the United States, although any cash received for fractional shares will be taxable.

As a result of the stock split, Brookfield said it would adjust its dividend policy to reflect the additional number of shares that will be outstanding. The company expects to commence paying a quarterly dividend of US$0.12 per share beginning June 30, representing an increase of about 6% over the current dividend rate, on a split-adjusted basis.