Get quality assets at a discount

POWER CORP. OF CANADA $36 is a buy. The conglomerate (Toronto symbol POW; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 667.1 million; Market cap: $24.0 billion; Dividend yield: 5.8%; Dividend Sustainability Rating: Above Average; has several primary investments, including controlling stakes in Canadian financial services firms Great-West Lifeco (insurance) and IGM Financial (mutual funds). It also owns 15.5% of Belgian holding company Groupe Bruxelles Lambert.

With the May 2023 payment, the company raised your quarterly dividend by 6.1%, to $0.525 a share from $0.495. The new annual rate of $2.10 yields a high 5.8%. Power also plans to buy back 30 million of its shares (4.5% of the total) in 2023.

As well, the holding company’s shares trade at a discount to its net asset value per share of $48.86 (as of June 30, 2023).

Power Corp. is a buy.


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