Power Financial Corp (PWF.TO) Buy, Sell or Hold

Power Financial Corp (PWF.TO)

36.31

-0.00 (0.00%)

as of Feb 19, 2020, 9:00:00 pm Market Open.

229 watching

BUY

The stock is very cheap, trading at under 8 times. The dividends are at 5.9%. It has good value with decent growth. The payout ratio is reasonable and sustainable. (Analysts’ price target is $32.00)

DON'T BUY

He prefers SLF-T. PWF-T always looks cheap. He wants not just great dividend yield but growth. He wants 10% to qualify for him to do the research. Negative interest rates just don't work.

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

For a long-term investor The stock has been sideways for a decade, though it pays a decent, safe dividend. The same goes with POW-T. It's a defensive stock during a recession. Otherwise, don't expect growth going forward.

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.

COMMENT

Has been intrigued for some time, but it hasn't done anything for a long time. Perhaps the descendants of the founder have been content to not make waves. Stock is cheap, nice yield. Downturn in the mutual fund portion.

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. (Analysts’ price target is $33.00)

HOLD

Looks stable, as though it's waiting to do something. Hold if you own it. Risky below $29. Upside probably limited to $32 before the end of the year. Good dividend. One of those fairly stable, high-paying dividend stocks. Likes it better than bank stocks. Take a small position, but be careful. Yield is 6%.

DON'T BUY

All you are getting is the dividend with this name. He does not know where the growth is going to come from. This is very much a yield stock. The dividend is safe and he thinks all the good news is the valuation now.

BUY

They recently bought back 5-8% of shares outstanding. It's a good income stock at a 5.9% dividend. PWF's performance depends on its subsidiaries, though it trades at an historially wide 19% discount to those subs. Maybe the subs have better growth. It's a safe defensive stock.

COMMENT

Both the Power companies have broken out of their trading range. PWF-T holds Investors Group and other investment management and insurance companies that are well positioned. The Lifecos under their management are being rolled under one name. This may bring a surge in investor interest. He looks to see which is selling at a larger discount to NAV -- right now favoring PWF-T.

HOLD

They did a branding exercise to put all their insurance under one brand. A well-wun company. Just bought back a lot of shares, which is a good sign. They rebounded well after their lows, so it's no surprise the stock has slightly pulled back now. It's a good long-term hold for the dividend.

COMMENT

Insurance in a portfolio? He sold their Power Financial holding last year. Following the banking crisis it just has not recovered. It owns GreatWest Life and IGM -- neither has done well. Insurance is a better bet than banks, he thinks. He would prefer SLF-T in Canada and AFG-N in the US.

BUY

PWF bought three separate companies--Investors Group, Great-West Life and London Life--and will do now synergize them, which is a good thing. It'll take a few years, but this will reduce overhead and costs and let them compete better with MFC and SLF.

COMMENT

PWF is holding a Dutch auction--what is that? A few Power stocks are doing this. It's like they're buying stock--if you don't want to keep holding your shares, you an tender them. PWF itself pays a good yield, but the Power stocks haven't done much which is why they are doing this auction. You're selling your shares back to the company, but you may not get your full, desired price. PWF is a good income stock.

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Power Financial Corp (PWF.TO)