GREAT-WEST LIFECO $34.21 - Toronto symbol GWO

GREAT-WEST LIFECO $34.21 (Toronto symbol GWO; Shares outstanding: 997.4 million; Market cap: $34.1 billion; TSINetwork Rating: Above Average; Yield: 3.8%; www.greatwestlifeco.com) is one of Canada’s largest insurance firms. It also offers mutual funds and wealth management. Power Financial owns 67.1% of Great-West.

In the three months ended June 30, 2015, Great-West’s earnings per share rose 6.5%, to $0.66 from $0.63 a year earlier.

In recent years, Great-West has bought firms in Ireland and the U.S. that have added new business lines and boosted its profits. Growth by acquisition can be risky, but the company’s large size lets it take advantage of opportunities with strong chances of success.

Great-West’s expansion helped it end the latest quarter with $1.1 trillion of assets under administration, up 42.7% from $804.5 billion a year earlier. The stock trades at just 12.1 times Great-West’s forecast 2015 earnings of $2.82 a share. The company raised its quarterly dividend by 6.0% with the March 2015 payment, to $0.326 from $0.3075. It yields 3.8%.

Great-West Lifeco is still a buy.

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