A buy for quality, yield and growth

Article Excerpt

Power Corp. has moved up this year, along with most financial services related stocks. Both of its major holdings are leaders in their fields. Both are still cheap in relation to earnings, and both have a long history of raising their dividends. POWER CORP. $29.32 (Toronto symbol POW; Shares outstanding: 408.4 million; Market cap: $12.0 billion; SI Rating: Above Average; Dividend yield: 4.0%) is a diversified holding company. Power Corp. holds its financial assets through 66.4%-owned Power Financial. Power Corp.’s financial assets include 68.7% of Great-West Lifeco, one of Canada’s largest life insurers, and 56.4% of IGM Financial, one of the country’s largest mutual-fund companies. As well, Power Financial owns 50% of holding company Parjointco, which holds a 54.3% stake in Switzerland-listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European companies: Imerys (minerals), Total SA (oil), Pernod Ricard (wine and spirits), Suez (energy, water and waste services) and Lafarge SA (cement and building materials). In the three…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.