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Opinions The Panic-Proof Portfolio (Stockchase Research)
IGM Financial Inc.IGM.TOTOP PICKNov 25, 2021
Stock price when the opinion was issued
As of Jun 22, 2026. Market Open.
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Premium contentOur PAST TOP PICK with IGM has triggered its stop at $63. To remain disciplined, we recommend covering the position at this time. When combined with previous guidance, this will result in a net investment gain of 63%.
Premium contentPremium contentPremium contentThey are upping their stake in private investments and added to their Rockefeller position with a high net worth. Investors are not ascribing that much growth and their good holdings are not being factored in. It is trading at 10.5X and growing at 7 1/2 with a 4% dividend. Technically it is a bit ahead of itself.
Premium contentPremium contentWith $144 billion in assets under management, we reiterate IGM as a TOP PICK. Cash reserves are growing while shares are bought back. It trades at 11x earnings, under 2x book and supports a respectable 12% ROE. The robust dividend is backed by a payout ratio under 60% of cash flow. We recommend relaxing the stop (currently at $43) to $40 — due to current financial market uncertainty — looking to achieve $51 — upside potential of 15%. Yield 5.0%
(Analysts’ price target is $51.15)Premium contentPremium contentPremium contentWe reiterate this investment services company, with the WealthSimple brand, as a TOP PICK. We like that cash reserves are growing while debt is aggressively retired and shares bought back. It trades at 11x earnings, 1.3x book, and manages a dividend payout ratio under 50% of cash flow. We recommend trailing up the stop (from $33.00) to $35.50, looking to achieve $44 -- upside potential of 15%. Yield 5.7%
(Analysts’ price target is $43.17)Premium contentFollowing recently reported net earnings growth of 87% over the year, we reiterate IGM as a TOP PICK. Its investment in WealthSimple is up 20%. Cash reserves remain steady as debt is aggressively retired and shares bought back. It trades at 10x earnings, 1.3x book value and supports a 14% ROE. We continue to recommend a stop at $33, looking to achieve $42 — upside potential of 18%. It pays a nice dividend, backed by a payout ratio under 50% of cash flow. Yield 6.3%
(Analysts’ price target is $41.71)Premium contentHis best guess is that GWO might be the best performer of the 3, though it's not particularly liquid but shouldn't be an issue for the retail investor. Insurance companies tend to do well in a rising rate environment, because it tends to discount their liabilities to a degree.
Premium contentPremium contentIGM is one of Canada's largest diversified wealth management companies with over $250 billion under management. It trades at 9x earnings, 1.3x book and operates with 35% margins. It pays a good dividend, backed by a payout ratio under 50% of cash flow. Quarterly cash reserves are growing, while debt is being reduced. We recommend placing a stop-loss at $27, looking to achieve $40 -- upside potential of 18%. Yield 6.0%
(Analysts’ price target is $40.17)
