2024-06-05 04:16:30 ET
Summary
- Power Corporation of Canada is trading at a 25% discount to its net asset value.
- The company has taken steps to improve the discount, but it is expected to persist.
- Power Corporation's ownership stakes in Great-West Lifeco and IGM Financial are expected to drive earnings growth.
- It pays an attractive 5.7% dividend, a payout poised to grow with earnings.
(All figures are in Canadian Dollars unless otherwise stated)
Power Corporation of Canada ( POW:CA )(PWCDF) is a collection of blue-chip financial assets that are trading at a 25% discount to the sum of their parts. But this isn't really a sum-of-the-parts story, since the stock is poised to deliver solid total returns and pay generous dividends even if the discount persists.
Introduction
Power Corporation of Canada is a holding company that can trace its history all the way back to 1925. Not surprisingly considering its name, Power was originally formed to invest in hydro power assets in Quebec....
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Power Corporation of Canada: Blue Chip Assets For 25% Off, Plus A 5.7% Yield