Opinions Robert Lauzon
IGM Financial Inc.IGM.TOHOLDApr 10, 2023
Stock price when the opinion was issued
As of Jul 24, 2026. Market Open.
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His best guess is that GWO might be the best performer of the 3, though it's not particularly liquid but shouldn't be an issue for the retail investor. Insurance companies tend to do well in a rising rate environment, because it tends to discount their liabilities to a degree.
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Premium contentIGM is one of Canada's largest diversified wealth management companies with over $250 billion under management. It trades at 9x earnings, 1.3x book and operates with 35% margins. It pays a good dividend, backed by a payout ratio under 50% of cash flow. Quarterly cash reserves are growing, while debt is being reduced. We recommend placing a stop-loss at $27, looking to achieve $40 -- upside potential of 18%. Yield 6.0%
(Analysts’ price target is $40.17)
Really likes financials for the second half of the year. From July-September, returns are anemic compared to the market. But at the end of the year, financials have good outperformance. Looks fantastic, strong dividend. Likely to take out highs of 2021 over the course of this cycle. Upside until late 2025 or early 2026.
A good dividend and balance sheet is strong. Cash flow, too. Most of your return will come from the dividend. The problem is that they're in a secular growth industry anymore, not like the 1990s or the early 2000s, and it's being disrupted by fintech. IGM is fine, but will not appreciate much.
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It is expanding into the U.S. and making acquisitions. It has pulled back and could flat-line for a while, You could also look at the parent company Power Corp.