Great-West Lifeco $34.22 - Toronto symbol GWO

GREAT-WEST LIFECO $34.22 (Toronto symbol GWO; Shares outstanding: 993.4 million; Market cap: $34.5 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 67.2% of Great-West. In the three months ended September 30, 2015, Great-West’s earnings rose 4.3%, to $0.72 a share from $0.69 a year earlier. The company continues to benefit from two recent acquisitions. In 2013, it paid $1.75 billion for Irish Life, Ireland’s largest pension manager and life insurance provider. In 2015, it paid an undisclosed sum for the Irish operations of Legal & General Group plc, which provides investment and taxplanning services to wealthy individuals. 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 $1.15 trillion in assets under administration, up 12.9% from a year earlier. The company raised its quarterly dividend by 6.0% with the March 2015 payment, to $0.326 from $0.3075. The shares yield 3.8%. The stock trades at just 11.7 times Great-West’s forecast 2016 earnings of $2.93 a share. Great-West Lifeco is still a buy.

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