great-west lifeco
Toronto symbol GWO, is Canada’s largest insurance company. It also provides retirement planning and wealth management services.
GREAT-WEST LIFECO $36.57 (Toronto symbol GWO; Shares outstanding: 997.4 million; Market cap: $36.7 billion; TSINetwork Rating: Above Average; Yield: 3.6%; 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 March 31, 2015, Great-West’s earnings per share rose 18.6%, to $0.70 from $0.59 a year earlier.
The company’s expansion in the U.S. and Ireland continues, helping it end the latest quarter with $1.2 trillion of assets under administration. That’s up 46.0% from $805.9 billion a year earlier and 102.6% from $581.9 million on March 31, 2013.
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In the three months ended March 31, 2015, Great-West’s earnings per share rose 18.6%, to $0.70 from $0.59 a year earlier.
The company’s expansion in the U.S. and Ireland continues, helping it end the latest quarter with $1.2 trillion of assets under administration. That’s up 46.0% from $805.9 billion a year earlier and 102.6% from $581.9 million on March 31, 2013.
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In recent years, Great-West has bought companies in Ireland and the U.S. that have added new business lines and boosted its profits. Growth by acquisition can be risky, but Great-West’s large size lets it take advantage of opportunities with strong chances of success. GREAT-WEST LIFECO $36.57 (Toronto symbol GWO; Shares outstanding: 997.4 million; Market cap: $36.7 billion; TSINetwork Rating: Above Average; Yield: 3.6%; 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 March 31, 2015, Great-West’s earnings per share rose 18.6%, to $0.70 from $0.59 a year earlier....
GREAT-WEST LIFECO INC. $37 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 997.5 million; Market cap: $36.9 billion; Priceto- sales ratio: 0.9; Dividend Yield: 3.5%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is one of Canada’s largest insurance companies, with $1.2 trillion of assets under administration. It also offers mutual funds, retirement planning and wealth management. Power Financial (Toronto symbol PWF) owns 67.1% of Great-West.
The company continues to expand in Ireland. In 2013, it paid $1.75 billion for Irish Life Group, a major pension manager and life insurance provider. It will also soon complete its purchase of the Irish operations of Legal & General Group for an undisclosed sum. This business provides investment and tax-planning services to wealthy individuals.
Meanwhile, in the three months ended March 31, 2015, Great-West’s earnings rose 19.3%, to $700 million from $587 million a year earlier. Irish Life contributed $80 million, up from $52 million. Due to more shares outstanding, earnings per share rose 18.6%, to $0.70 from $0.59. Revenue rose 27.6%, to $12.7 billion from $9.9 billion.
The company will probably earn $2.82 a share in 2015, and the stock trades at a low 13.1 times that estimate. The $1.30 dividend yields 3.5%.
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The company continues to expand in Ireland. In 2013, it paid $1.75 billion for Irish Life Group, a major pension manager and life insurance provider. It will also soon complete its purchase of the Irish operations of Legal & General Group for an undisclosed sum. This business provides investment and tax-planning services to wealthy individuals.
Meanwhile, in the three months ended March 31, 2015, Great-West’s earnings rose 19.3%, to $700 million from $587 million a year earlier. Irish Life contributed $80 million, up from $52 million. Due to more shares outstanding, earnings per share rose 18.6%, to $0.70 from $0.59. Revenue rose 27.6%, to $12.7 billion from $9.9 billion.
The company will probably earn $2.82 a share in 2015, and the stock trades at a low 13.1 times that estimate. The $1.30 dividend yields 3.5%.
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A great way to diversify your Finance sector holdings beyond the big banks is to buy shares of Great-West Lifeco and IGM Financial. Both companies lead their fields, trade at low multiples to earnings and have a history of rising dividends. GREAT-WEST LIFECO INC. $37 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 997.5 million; Market cap: $36.9 billion; Priceto- sales ratio: 0.9; Dividend Yield: 3.5%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is one of Canada’s largest insurance companies, with $1.2 trillion of assets under administration. It also offers mutual funds, retirement planning and wealth management. Power Financial (Toronto symbol PWF) owns 67.1% of Great-West. The company continues to expand in Ireland. In 2013, it paid $1.75 billion for Irish Life Group, a major pension manager and life insurance provider. It will also soon complete its purchase of the Irish operations of Legal & General Group for an undisclosed sum. This business provides investment and tax-planning services to wealthy individuals....
A holding company is a company that owns all or a substantial part of a variety of different businesses. These businesses may be private companies, or publically traded. Holding companies may own all, or a majority or a minority, of companies in which they invest. The one thing most holding companies have in common is that they trade for less than the combined value of their holdings. This “holding company discount” is a well-known phenomenon in finance. It represents a special kind of hidden asset and potential profit for investors in holding companies. When holding companies sell assets or break themselves up into their constituent parts, much if not all of the discount may disappear. In other words, holding companies can usually sell their assets for fair market value, rather than at a discount. In addition, fair market value may turn out to be be more than analysts figured they were worth. Even without a break-up, buying a holding company at a discount to its asset value puts more assets to work for you for each dollar you invest....
POWER CORP. $33.52 (Toronto symbol POW; Shares outstanding: 412.6 million; Market cap: $15.5 billion; TSINetwork Rating: Above Average; Div. yield: 3.5%; www.powercorporation.com) is a diversified holding company. It holds its financial assets through 65.7%-owned Power Financial.
These financial assets include 68.1% of Great- West Lifeco, one of Canada’s largest life insurers, and 58.7% of IGM Financial, a leading Canadian mutual fund provider.
As well, Power Financial owns 50% of holding company Parjointco, which holds a 55.5% stake in Switzerland-listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European firms: Imerys (minerals), Total SA (oil), Pernod Ricard (wine and spirits), SGS (inspection, testing and certification services) and Lafarge (cement and building materials). Power Corp. also has investments in Asia.
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These financial assets include 68.1% of Great- West Lifeco, one of Canada’s largest life insurers, and 58.7% of IGM Financial, a leading Canadian mutual fund provider.
As well, Power Financial owns 50% of holding company Parjointco, which holds a 55.5% stake in Switzerland-listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European firms: Imerys (minerals), Total SA (oil), Pernod Ricard (wine and spirits), SGS (inspection, testing and certification services) and Lafarge (cement and building materials). Power Corp. also has investments in Asia.
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POWER CORP. $33.52 (Toronto symbol POW; Shares outstanding: 412.6 million; Market cap: $15.5 billion; TSINetwork Rating: Above Average; Div. yield: 3.5%; www.powercorporation.com) is a diversified holding company. It holds its financial assets through 65.7%-owned Power Financial. These financial assets include 68.1% of Great- West Lifeco, one of Canada’s largest life insurers, and 58.7% of IGM Financial, a leading Canadian mutual fund provider. As well, Power Financial owns 50% of holding company Parjointco, which holds a 55.5% stake in Switzerland-listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European firms: Imerys (minerals), Total SA (oil), Pernod Ricard (wine and spirits), SGS (inspection, testing and certification services) and Lafarge (cement and building materials). Power Corp. also has investments in Asia....
GREAT-WEST LIFECO INC. $35 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 996.7 million; Market cap: $34.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is paying an undisclosed sum for the Irish operations of Legal & General Group plc. This business provides investment and tax-planning services to wealthy individuals. It looks like a nice fit with Irish Life, a leading insurance firm Great-West acquired in 2013.
Thanks to Irish Life’s contribution and savings from eliminating duplicate functions, Great-West’s earnings jumped 34.7% in the three months ended December 31, 2014, to $0.66 a share from $0.49 a year earlier. Revenue rose 33.1%, to $10.7 billion from $8.1 billion.
The company has also raised its quarterly dividend by 6.0%, to $0.3260 a share from $0.3075. The new annual rate of $1.30 yields 3.7%.
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Thanks to Irish Life’s contribution and savings from eliminating duplicate functions, Great-West’s earnings jumped 34.7% in the three months ended December 31, 2014, to $0.66 a share from $0.49 a year earlier. Revenue rose 33.1%, to $10.7 billion from $8.1 billion.
The company has also raised its quarterly dividend by 6.0%, to $0.3260 a share from $0.3075. The new annual rate of $1.30 yields 3.7%.
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GREAT-WEST LIFECO INC. $35 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 996.7 million; Market cap: $34.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is paying an undisclosed sum for the Irish operations of Legal & General Group plc. This business provides investment and tax-planning services to wealthy individuals. It looks like a nice fit with Irish Life, a leading insurance firm Great-West acquired in 2013. Thanks to Irish Life’s contribution and savings from eliminating duplicate functions, Great-West’s earnings jumped 34.7% in the three months ended December 31, 2014, to $0.66 a share from $0.49 a year earlier. Revenue rose 33.1%, to $10.7 billion from $8.1 billion. The company has also raised its quarterly dividend by 6.0%, to $0.3260 a share from $0.3075. The new annual rate of $1.30 yields 3.7%....
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We continue to recommend that investors aim to own two or more of Canada’s big five banks. But we also feel that conservative investors should further diversify their Finance-sector holdings with stocks like Great-West Lifeco.
GREAT-WEST LIFECO (Toronto symbol GWO; www.greatwestlifeco.com) has reported strong results in its latest quarter and raised its dividend.
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We continue to recommend that investors aim to own two or more of Canada’s big five banks. But we also feel that conservative investors should further diversify their Finance-sector holdings with stocks like Great-West Lifeco.
GREAT-WEST LIFECO (Toronto symbol GWO; www.greatwestlifeco.com) has reported strong results in its latest quarter and raised its dividend.
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