GWO Preferred Shares 5.4% Perpetual (GWO.PR.P.TO)

We reiterate GWO.PR.P as a TOP PICK.  GWO is a well-diversified lifeco.  The company’s latest quarterly earnings showed cash reserves growing, while debt is retired and shares bought back.  The company trades at 1.5x book value.  This preferred share pays a perpetual quarterly dividend that has a great yield and high (Pfd-2H) credit rating.  Rising interest rates have reduced the preferred share value to a discount of its $25 par value; however, as interest rates stall and eventually return to lower long term levels this can provide possible upside potential over 20%.  We continue to recommend a stop at $17.25.  Yield 6.5%

GWO is a well-diversified lifeco.  The company’s latest quarterly earnings showed cash reserves growing, while debt is retired and shares bought back.  The company trades at 1.5x book value.  This preferred share pays a perpetual quarterly dividend that has a great yield and high (Pfd-2H) credit rating.  Rising interest rates have reduced the preferred share value to a discount of its $25 par value; however, when interest rates return to long term levels this can provide possible upside potential of 22%.  We recommend placing a stop-loss at $17.25.  Yield 6.5%