Chris Blumas Great West Lifeco GWO-T BUY ON WEAKNESS Feb 12, 2025

Revenues from asset management, insurance, annuities, health benefits. Very diversified. Around for decades. Likes the safety and growth over time. Dividend growth is about 8%. Payout ratio still in 50-70% range. High quality. Not necessarily a home run, but a single: core holding for the long term, dividend payments, some price appreciation. Yield is 4.6%.

Because it's diversified, interest rate moves benefit different segments at different times.

Both companies have done quite well and both are cheap with secure dividends. It has been a good year for the sector but they may not get the same returns going forward.

All the insurance names, both in Canada and the US, continue to work. If interest rates do, in fact, go higher, that will only be beneficial for lifecos and other insurers. The chart looks fantastic. Good run, so there is some weakening in the intermediate term.

If a long-term holding, best thing you can do is sit on your hands and do nothing except participate in the DRIP program. Especially if he's right on the broader call of rates being 8-10% in the secular bear market of 2030-40, should be a big tailwind for insurers.

He owns both this and Manulife. Rates going up have helped a lot. They are working on improving the U.S. side which wasn't going well. The Canadian side is doing well.

An insurer, holding long-term assets that are not exposed much to market volatility. Their dividend grows 8% annually, not paying almost 5%. Gives you income and safety. Lots of cash flow.

He owns POW instead, but you could own this one as well.

Likes its acquisition strategy, as it feeds into the growth profile.

Growing very decisively. Done extremely well. A good way to get exposure to this is via POW.

His favourite in the space. Nice yield. Growing in mature markets in Europe, generates reasonable returns. Very disciplined. Reasonable valuation.