IGIFF - IGM Financial: Is Its Headwinds Manageable?
Investment Thesis
IGM Financial (IGIFF) (TSX: ((IGM))) is a mutual fund company in Canada. The company is facing strong competitions from low-cost passive investing as well as larger Canadian banks' mutual fund products. IGM Financial is adjusting itself to meet the challenges by changing its fee structure, pivoting towards high net-worth gross sales, and offering innovative products to meet the needs of its customers. However, its shares are fairly valued. While it pays a dividend with an attractive yield of 5.7%, its payout ratio is quite high. Dividend growth investors should exercise caution