Power Financial Corp (PWF.TO)

On his Buy List, when it gets to the right level, probably a little below where it is now. He has focused on the financial sector mainly for the yield, which includes the chartered banks, lifecos and a handful of REITs. This company has a good opportunity to increase dividends.

This is a “steady Eddie”, a lower risk name. He sees 8.5X earnings per share growth compounded over the next couple of years. Dividend yield of 3.97% with a 6.2% annual growth. Trading below its five-year average at 11.5 versus 12.5. Very conservative payout ratio.

This is a company that has historically increased its dividends regularly, twice a year. The largest shareholder in Great West Lifeco (GWO-T), London Life, Canada Life and Putnam Investments. Also, the largest shareholder in IGM Group (IGM-T), Investors Group, etc. After the financial crisis they did not raise their dividend until March of this year. Thinks it is going to start again to be a regular thing, so your yield is going to continue to go up.

Likes their background investments of Investors Group and Great West Life (GWO-T). A well-run company. Pays quite a nice dividend. Feels it has good, long term prospects, mainly centred in North America. A nice stock to put in your portfolio and just cash in the dividends.

He uses this as a non-bank financial. Likes their mix of product. Dividend is okay. Strong management and a good balance sheet. Usually yielding a little better than the banks. Current yield of 3.7%.

Has performed better of late, simply because it was sort of a laggard and under-loved name for a long time. Trades at a discount to NAV and will benefit on the insurance side with rising interest rates.

Basically made up of Great West Life (GWO-T) and Investors Group. This is a good name for income as it provides an attractive yield.

Change this for a Canadian bank? For one thing, this has a higher dividend yield than the average Canadian bank, which should be taken into consideration. This is composed of 2 things. Investors Group and Great West Life. Banks have out performed the lifecos in the last little while, which is why you are seeing a performance differential. This one is relatively safe. When and if interest rates go up, the life companies will outperform Canadian banks.

(A Top Pick Jan 2/14. Up 3.84%.) Still likes this. The Power Group has 3 things that he likes.1) Lots of upside potential, 2) nice yield and 3) they are cheap.

(Top Pick Dec 30/13, Up 2.4%) Great West Life and others. Investors group (IGM) that struggled for a while. People were worried that IGM was bringing down their fees, but that is now known not to be true. They may raise their dividend next year. It is a later stage company because of their Irish investments.

Power Financial (PWF-T) or Power Corp (POW-T)? He owns Power Corp, so he must think that one is the better buy. They both trade at a discount to their NAV, which is Great West Life (GWO-T), IGM Group and then a whole bunch of European assets. Power Corp gives you a little more in assets. Thinks there is going to be a dividend increase very shortly for both of them.

The Q3 was a strong beat. Underlying businesses of wealth management and life insurance are very attractive. Has a 4% conservative dividend with a 42% payout ratio. Believes we are going to finally see dividend growth, and models it at 8%-10% for 2015. However, it is trading below its 5 year average at 11.6X versus its 5 year average of around 13. In an environment in the TSX where he expects to see an energy vacuum and a continued mining vacuum, and maybe even a telecom vacuum to come, he thinks money is going to look for other places.

Ville de Quebec. 2.3% bond due Dec 4/18. (Top Pick Nov 22/13, Up 3.91%) He is confident with any municipality in Ontario.

Not a bad time to buy this one. It has a reasonable yield. A good, safe, long-term investment. Good management.

(Market Call Minute) Prefers MFC-T or MS-N. Still likes it and it is in the right space.