TSE:POW

Power Corp (POW.TO)

91.84
-0.43 (0.47%)
as of Aug 31, 2026, 8:00:00 pm Market Open.
642 watching
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Investor Insights
star iconAug 31, 2026, 12:00 am

This summary was created by AI, based on 22 opinions in the last 12 months.

Power Corp (POW-T) is a well-regarded Canadian asset manager, primarily anchored by its significant holdings in Great-West Life (GWO) and Investors Group (IGM). The consensus among analysts indicates a growing concern regarding the stock's current valuation, with several experts noting that it appears expensive compared to historical price-to-book ratios. While analysts commend the company for its solid performance and dividend growth, many express a preference for acquiring more direct and potentially less valued assets, like GWO. Recent market trends reflect a mix of sentiment: although the stock exhibited strong momentum and has outperformed many peers, there's caution suggesting a potential correction or pullback could provide a better entry point for new investors. Overall, while the company showcases stability and robust income through dividends, the opinion is divided on the merits of immediate investment at its current price levels.

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Consensus
Cautious
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Valuation
Overvalued
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Similar
BAM, BMO
DON'T BUY
Given consolidation announced this week, is it a value trap? Little incentive for owners, the Desmarais family, to create shareholder value, so the stock has done nothing for a very long time. The dividend is safe and the underlying insurance holdings are steady, but little happening. Prefers Sun-Life which offers more upside. Nothing wrong with POW-T per se, but is management working for the shareholder?
HOLD

PWF is a holding that she has for the income. PWF and POW are going to merge, which is driving up the value of both today. The merger is one way to close the gap between market valuations of the two. There is some thought the dividend will increase and the new entity plans to buy back shares. She will continue to hold as it an income stock. The yield is still over 5%.

DON'T BUY
A holding company with Power Financial being a main holding. It is Great West Life investor group, so financial and mutual funds. Not a lot of growth. The original founder has died and his children took over. A disappointing stock and not exciting. He held it but sold.
BUY

He owns PWF instead, which pays a slightly higher dividend. POW is a solid company that's grown for a long time. The generation that's inherited that company may lack the drive of the founder but they are operating  steadily. Worth holding onto, a buy-and-hold.

SELL
He does not own them and has not done for years. He would trade into something else. For over 10 years that has been dead money. He does not see how management will create anything exciting.
COMMENT

POW vs. BPY Different business models, so difficult to compare them. Brookfield has superb managers. POW has stalled in recent years. He prefers BPY though both Power stocks have been doing better lately.

WATCH
About 8% payout ratio. This is a prime candidate for him to purchase. This one could end up lagging the performance of the overall market over the next 12 months.
WEAK BUY
Great company. Beta is between 0.8-1, so more defensive than broad market. In a choppy market, things with high yields and low beta tend to do better, though not immune to a downturn altogether. Could do worse, but could do better. Not your best horse in terms of asset management. Dividend yield is about 6%.
DON'T BUY
Life insurance companies have not done that well. This company owns Great West Life, which has been a disappointment.
DON'T BUY
Dividend is safe. But not a lot of capital appreciation. Underlying subsidiaries have not performed well. She prefers a company that provides more visibility and has higher dividend and cash flow growth. Yield is 5.5%.
HOLD
The market has taken the point of view that until the areas they are primarily in show growth or momentum, the rest of their company has only been doing 'okay'. You won't get significant appreciation in the foreseeable future.
COMMENT
PWF or POW? He would prefer Power Financial as it trades to a discount to the parent. He is not a big fan of the Investors Group and Great West Life. He would look towards others in the space -- preferably the Canadian banks instead.
DON'T BUY

POW vs. PWF POW has better liquidity so institutional investors prefer it. For growth, though, these are plays on life insurance. The PWF yield is over 6% and tantalizing. They likely won't cut the dividend, but probably will pause dividend growth. There are better stocks in asset management or insurance. He wouldn't buy either for capital appreciation.

BUY
POW-T vs. PWF-T. She owns a bit of Power financial. Either one is probably fine. They are considered income stocks so if interest rates go down it should be beneficial for both.
BUY
It's been rangebound for so long. It's consolidating to 2016 levels now and the chart looks good.
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