Power Corp

POW-T

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.

It's come off a lot and not acting fantastically, but at the current $24 it's at a level that historically has been a tough spot to break. It won't turn around any time soon, but the risk is to the upside.

He bought it after the elder Desmarais died, expecting a catalyst to revitalize the company. Wrong! The sons have failed. The dividend is huge because people keep selling the stock because nothing is happening. Nobody likes Investors Group that POW own, because of robo advisors and ETFs creaming off parts of their business. Lifecos aren't making a lot of money. That said, POW is trading at 65% NAV, instead of the normal 85%, so you could get a 20% kick on this stock.

He held it for about 20 years and sold out last year. In the past it was able to grow earnings and dividends, but that all stopped during the crisis of 2008 and it has gone sideways since then. It is a holding company of financial services companies and holds European securities. None of this has done much. Mutual fund management has slowed. Great West Insurance has also been a laggard.

PWF-T vs. POW-T. The parent vs. the subsidiary. He would go to PWF-T. We saw a bit of a pull back. He prefers the banking sector even more than these. He would not step into either one.