IGM Financial: Rising Assets Under Management Supports Its High Dividend Yield

IGM Financial’s wealth management business continues to attract high-net-worth clients at an accelerating pace, ensuring stable fee-based revenue generation even in volatile markets. Additionally, the company’s technology investments are enhancing advisor productivity and improving client experiences. This creates a sustainable competitive advantage in an increasingly digital industry.

With expanding assets under management, and strong momentum across all business segments, the firm is positioned for continued earnings growth over the coming quarters.

Meanwhile the stock trades at a very reasonable 10.0 times the company’s forward earnings forecast.

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider. It also offers ETFs and wealth management services. Power Corp. (Toronto symbol POW) owns 62.2% of the firm.

IGM has two main businesses: Mackenzie Financial sells funds and ETFs through independent brokers; and IG Wealth Management (formerly Investors Group) offers mutual funds and other services, such as portfolio management, through its more than 3,000 affiliated advisors.

The company also owns 27.3% of robo-advisor Wealthsimple. Generally, robo-advisors provide portfolios composed of ETFs tailored to different investor goals.

IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages.

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Thanks to rising stock market values, IGM’s assets under management (and advisement) rose 9.0%, to $275.0 billion as of March 31, 2025, from $252.2 billion a year earlier.

The company also reported a net inflow of new money (net of redemptions) of $3.29 billion in March 2025. That’s due to higher inflows at IG Wealth ($207.0 million) and Mackenzie ($3.08 billion).

Any stock market declines due to U.S. tariffs will undoubtedly cut IGM’s assets under management and hurt its earnings. However, it’s unlikely these trade disputes will prompt the company’s clients to withdraw their funds as many of them have long-term relationships with IGM.

IGM Financial: Shareholder returns accelerate with dividends and buybacks

The current stock market declines due to the new U.S. tariffs will undoubtedly cut IGM’s assets under management and hurt its earnings. However, it’s unlikely these trade disputes will prompt the company’s clients to withdraw their funds as many of them have long-term relationships with IGM.

The company last raised your quarterly dividend by 4.7% with the January 2015 payment. The current annual rate of $2.25 a share yields a high 5.1%.

The stock is still attractive at 10.0 times IGM’s projected 2025 earnings of $4.37 a share

IGM’s TSI Dividend Sustainability Rating is Above Average.

Recommendation in The Successful Investor: IGM Financial Inc. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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