Power Corp

POW-T

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%.

Life insurance companies have not done that well. This company owns Great West Life, which has been a disappointment.

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%.

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.

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.

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.

It's been rangebound for so long. It's consolidating to 2016 levels now and the chart looks good.

Don't buy a stock only for the dividend, because some won't see growth, like POW. Lower interest rates won't help them. They bought Wealthsimple, but will that pay off? He's been holding his breath on POW for a long time and he's given up. POW is always on the wrong side of trends.

(A Top Pick Jun 12/18, Down 2%) He bought it when Desmarais died and expected his heirs to inject fresh ideas. The NAV is now far ahead of the stock price. Still owns it, getting a nice 5.75% dividend. There are small signs that management is trying to make investors happier, but falling rates is negative for all insurers like POW, he's disappointed that a catalyst hasn't pushed these assets to their full potential.

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.

The whole group of companies have announced a share buyback. He thinks it is a good investment for the dividend. This series of companies are solid. We need to see Putnam, their acquisition that GWO-T made, delivering through their mutual fund company.

The parent is discounted on a NAV basis relative to the underlying assets. He does not like the sub-underlying companies, especially on the investment service side. He would prefer to hold their preferred shares. The yield is well covered. Yield 5.5%

Is the dividend safe? She thinks the yield is safe. Investors' Group is going through changes, so that is eroding the earnings. She wonders about how much growth there is, so the dividend may not grow forever.

POW-T vs. PWF-T. Great West Life is the underlying company that supports both of these stocks. They are basically the same price. POW-T trades at a discount to GWO-T. You need to believe in GWO-T to own these two companies.