Great West Lifeco (GWO.TO)

Price to book is more expensive than Sun Life (SLF-T) or Manulife (MFC-T). Just did the Irish life transaction which will be very accretive for them.

(See Top Picks for the insurance company that he prefers.) Likes the insurance space because they fund their liabilities through their investments. They can re-deploy a lot of cash now. Reasonable dividend (4.5%) and valuation. Prefers MFC-T. You can also buy Power Financial Corp which holds GWO-T.

(A Top Pick March 30/12. Up 17.3%.) Completed the acquisition of Irish Life which will add about $0.10-$0.12 in earnings next year. They are overdue to raise the dividend and expects this later this year or early next year.

(A Top Pick Feb 29/12. Up 7.8%.) Preferred P series 5.4%. This is a perpetual. He is bullish on the market so he wants to be a bit longer-term.

Acquired Irish Life Group, which will be accretive as they got this at a bargain price. Owns this through Power Financial (PWF-T).

(Market Call Minute.) It’s a complicated business down in the US and they are struggling with it.

With this lifeco, your dividend is solidly and safely covered. 4.84% yield. He is looking for stocks that are cheap with a good yield for the coming year. Wouldn’t be surprised if it got 15%-20% higher from here.

(Market Call Minute.) Wake him up when it is all over. Just can’t get fired up on the lifecos right now.

Preferred Series R, 4.8%. A recent new issue. It will be sometime before it is called. A perpetual. Has the 2017 and then being $26 reduces down to $25 by 2021.

Great West Life (GWO-T) or Power Financial (PWF-T)? He is out of this space completely. They need higher interest rates and he doesn’t see them going up anytime soon.

Thinks it’s a good company. Has escaped some of the problems that Manulife (MFC –T) has had. He participates in this through owning Power Financial (PWF-T) which has got a pretty good dividend. There is probably still some downside risk with the lifecos.

Likes the Canadian insurance sector. This company is controlled by Power Corp (POW-T). Very high quality company. Did not get into financial trouble during the financial crisis. Very secure dividend and very well run.

Preferred P 5.4%. Likes that it is a non-bank financial. Represents a lot of good value.