Insurers shift focus to post-pandemic growth

Article Excerpt

These leading insurers are once again raising their dividends as the COVID-19 pandemic eases. They are also using acquisitions to fuel their future growth. However, we feel Intact is the better choice for your new buying. GREAT-WEST LIFECO INC. $34 is a hold. The company (Toronto symbol GWO; Conservative Growth Payer Portfolio, Finance sector; shares outstanding: 931.8 million; Market cap: $31.7 billion; Dividend yield: 5.8%; Dividend Sustainability Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. Power Corp. (Toronto symbol POW) owns 70.6% of the firm. Canada’s banking regulator—the Office of the Superintendent of Financial Institutions (OFSI)—has lifted the restrictions on capital distributions placed on banks and insurers in March 2020 due to COVID-19 uncertainty. As a result, Great-West paid an additional dividend of $0.052 a share on December 31, 2021. It now pays a quarterly dividend of $0.49, up 11.9% from the previously payment of $0.438. The new annual rate of $1.96 yields a high 5.8%. The company plans to pay between 45%…