These three help balance your Finance risk

Article Excerpt

For most investors, Canada’s Big Five banks account for most of their exposure to the Finance sectors. Even so, we continue to recommend investors add more specialized firms, such as the three we analyze below, to balance their risk. However, not all of them are suitable for new buying. GREAT-WEST LIFECO INC. $39 is a hold. The company (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 929.6 million; Market cap: $36.3 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. It also offers mutual funds and wealth management services. Power Corp. (Toronto symbol POW) owns 66.7% of the firm. The company has announced a series of acquisitions in the past few months as part of a plan to diversify its operations. For example, Great-West’s Empower Retirement unit recently agreed to buy the full-service retirement business of U.S.-based Prudential Financial Inc. (New York symbol PRU). That unit covers…

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.